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Competitive edge breeds optimism

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CONFIDENCE in New Zealand's economic recovery is high after a decade of despondency.

The optimism is based on real and sustained growth due mainly to a sharpened competitive edge and diversification of exports.

Export growth is strong despite weak international economic conditions, and export prices are rising.

Employment has begun improving, the inflation rate is one per cent and import growth is picking up as household spending and business investment recovers.

According to the chief economist at the National Bank of New Zealand, Girol Karacaoglu, the expectation of low inflation is underpinned by fundamental institutional changes that have been implemented over the last three years.

These include the legislated responsibility of New Zealand's Central Bank to achieve and maintain stability in the general level of prices.

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