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New Zealand - Downbeat businesses pose a downside risk

Our relatively bearish view that GDP growth will slow from 2.8% last year to 2.0% next year has always been based on the idea that the end of the migration and housing booms would weaken consumption and dwellings investment. The latest evidence suggests that forecast may prove to be a good one. The new risk is that low business confidence causes business investment to weaken by more than we expect.

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