More checks on imports predicted

Press, 3 July 1978, Page 16

More checks on imports predicted

Commercial

Freer spending from Sep-tember-October this year, "particularly on cars, television and jther consumer durables.” is predicted in the current issue of "Business Forecasts." published quarterly by the Berl Consulting Group. Ltd.. Wellington. The journal foresees •quickening demand" in tine early months of 1979, and Government measures in the first or second quarter of next year to check spending on imports and to restrain PRICE rises. The journal predicts Gross National Product at $19.3

i- billion — practically unr. changed — in 1978-79. Pro-i-1 duction in New Zealand ■r| (gross domestic product) is e estimated to rise 1} per ■s cent, and a 3 per cent fall in ■-’imports is expected. g Private consumption is shown unchanged (at 1977■s|7B prices) at $8.35 billion eiand private investment and d I stocks are expected to fall 5 e per cent. Government ex>f penditure on current and g capita! items is expected to n | rise 3 per cent, and the Isame percentage rise is pres(dieted for exports. 3 1 The improvement in the

- country’s balance of trade - will be partly offset, says 1 “Business Forecasts," by an > increased deficit on invisible r items. On a balance-of-pay-i ments basis, the current deficit is predicted to decline > from SBlO million in the - year ended March, 1978. to i $640 million in the current I March year. > Overseas exchange trans- • actions recorded by the Re--1 serve Bank will show a sim- > ilar trend: from a current ! deficit of $450 million in the • year ended June, 1978, to a deficit of $4OO million in the ! year ending June, 1979.