RTTNews - Tuesday, Assistant Governor of the Reserve Bank of New Zealand, John McDermott said the bank's baseline result indicated that the economic impact of influenza A (H1N1) or swine flu would possibly be low with declines in output of less than 0.6% in the first year.

He said the baseline numbers based on Ministry of Health assumptions are smaller than some reported recently in the markets, and smaller than the historical experience of Hong Kong with SARS and the U.S. economy with the 1918 episode.

He added, We also modelled other more extreme scenarios which we note are extremely unlikely to occur since they are predicated on much more aggressive strains of influenza.

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