RTTNews - Monday, a report released by New Zealand's Treasury said the outlook for the economy for the second half of the year is more positive, but still weak. The New Zealand economy is expected to shrink 0.2% in the September quarter after easing 0.4% in the second quarter.

According to the latest Monthly Economic Indicators report, import values dropped by more than exports, indicating the current account deficit reached near 7.5% of GDP in the June quarter, as in the Budget Forecasts.

Further, retail sales volumes for the June quarter are forecast to remain flat despite a surge in May. The Treasury expects private consumption to remain soft, driven by a weak labor market, with the unemployment rate peaking in the second half of 2010.

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