IMF World Economic Outlook: New Zealand to Enjoy Strongest Growth in 2014
By Reissa Su | October 10, 2013 12:18 PM EST
New Zealand is expected to enjoy the strongest growth among the fastest-growing advanced economies in 2013 and 2013 based on the annual World Economic Outlook of the International Monetary Fund (IMF). With business confidence at a 14-year high, New Zealand may be on its way to economic recovery with high projections from IMF.
The IMF has forecast the economic growth rate of New Zealand in 2013 at 2.5 per cent. Among the 35 advanced economies listed by the IMF, only Israel, Singapore, Hong Kong and Korea were tipped to have a stronger growth rate than New Zealand. According to the World Economic Outlook report, the average growth for advanced economies was pegged at 2 per cent in 2013.
The growth rate is expected to reach 2.9 per cent in 2014 based on IMF estimates. The figure is also expected to be exceeded by New Zealand, Singapore, Hong Kong, Korea and Taiwan which will raise the average growth for advanced economies to 2 per cent.
In terms of fiscal policies, the IMF has noted that New Zealand looked relatively good with a government deficit of 0.4 per cent of gross domestic product (GDP) over 2014. The average government deficit for advanced economies is 3.5 per cent.
IMF's World Economic Outlook also expected New Zealand to have an unemployment rate of 5.3 per cent in 2014 which was not as alarming as the 12.2 per cent projected in European nations. The United States is expected to have a 7.4 per cent unemployment rate while Australia's unemployment rate is projected at 6 per cent.
According to the IMF, the global economy has been "stuck" in a slowdown with an annual growth paced at 2.5 per cent in the first 6 months of 2013. It was relatively the same as the second half of 2012.
The IMF expected the global growth rate to pick up and reach 2.9 per cent in 2013 and 3.6 per cent in 2014. World trade volumes are also projected to rise to 4.9 per cent in 2014 from 2.9 per cent in 2013.
Emerging economies will continue to account for the bulk of the overall world growth despite their economic slowdown.
The IMF forecast China's growth rate to slow down at 7.3 per cent in 2014, down from 7.3 per cent in 2013. The report assumed that Chinese authorities will not implement a major stimulus and let the slowdown continue to make the transition to a more sustainable economy.
To contact the editor, e-mail:
Most Popular Slideshows
- Kristen Stewart Moving On With Nicholas Hoult, Jennifer Lawrence Dating Chris Martin – Reports [PHOTOS]
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
Join the Conversation
- Russia Demands Ukraine Release Communications With Doomed Malaysia Airlines MH17, Preliminary Report On Investigations Out This Month
- Ebola Update: Liberian Forces Receive Shoot Orders Against People Trying to Cross from Sierra Leone Border
- Historic First Time: Catholic Pontiff Pope Francis Supports Military Intervention Against ISIS In Iraq
- Chinese Airlines Receives Lawsuit for Rejecting HIV-Positive Passengers
- Travel Alert: Canada Issues Warning Against Chikungunya Disease in Caribbean
- Robin Williams Goodbye Video Hoax: Facebook Users Warned of Celebrity Suicide Exploitation
- US, Canada Labour Activists ‘Block the Boat for Gaza’ Succeed in Blocking Docking of Israeli Ship in California Port
- 4 Killer Android Features Apple Fans Would Love to Get Come the iPhone 6 Release Date
- ISIS Posts Graphic Beheading Video of US Journalist James Foley
- Larger 5.5inch iPhone 6 Variant Will Roll Out in the Market as ‘iPhone 6L’
- Nexus 6 Release Date Dilemma with Motorola Shamu Details Pointing to Better Smartphone and Killer Features
- After James Foley, ISIL Threatens to Behead Another American Journalist Steven Sotloff