New Zealand Finance Minister Bill English Tuesday said the country's economy was still well positioned to weather any downturn in the global situation despite the OECD cutting the country's growth forecast.
In its twice-yearly economic outlook, the Organisation for Economic Co-operation and Development (OECD) forecast a growth rate for next year to 2.5 percent from 4.1 percent forecast in May.
It also predicted 3 percent growth in 2013 growth, saying growth would accelerate in the next two years as reconstruction of the earthquake-damaged second city of Christchurch progressed.
English told the Fairfax news group that he noted the OECD forecasts referred to the resilience of the New Zealand economy.
"They are a bit lower, but we are a resilient economy -- for instance we've seen the exchange rate come back in a way that will cushion the effect of a drop in export prices, we've still got room on interest rates. So we are reasonably well positioned if things get a bit negative," said English.
In its economic forecast summary, the OECD said post-earthquake rebuilding would provide ongoing stimulus despite a relatively high New Zealand dollar and a weaker global economy that would " undermine exports for a time."
"High commodity prices and a recovering labor market are supporting incomes, although private spending will be restrained by necessary deleveraging," said the summary.