Business

Bascand eyes boom year for economic growth

18:48 pm on 13 December 2013

The country's top investment management company says next year could be New Zealand's best vintage for economic growth in a decade.

The award-winning firm Harbour Asset Management says the economic backdrop is favourable, with strong dairy incomes, Auckland's housing recovery, the rebuild of Christchurch and an improving global economy.

That's reflected in New Zealand equity prices, which rose 19% this year, and have doubled from a low point in February 2009.

Harbour Asset Management's managing director Andrew Bascand says this year's been a banner year for economic growth but next year's likely to be even better.

"The outlook for 2014 is for better global economic growth - modestly better - and certainly for even stronger New Zealand economic growth," Mr Bascand says.

"If there's one key risk, it's how households and businesses think of the rising interest rates environment, and a second risk is concerns around uncertainty with an election".

The nation's central bank wants to start "normalising" interest rates, so householders should be thinking about coping with higher interest costs.

The concern over uncertainty is a potential worry if businesses start postponing investment, Mr Bascand says.