New Zealand’s economy will expand at a slower pace than previously predicted amid sluggish consumer spending, according to a survey of economic forecasters.

Gross domestic product will increase by 2.1 percent in the year ending March 31, 2011, according to the average estimate of 10 economists surveyed by the Wellington-based New Zealand Institute of Economic Research Inc. Three months ago, they forecast a 2.8 percent expansion. Growth will be 3.5 percent in the year through March 31, 2012, stronger than the previous prediction of 3.1 percent, according to the survey.

“Economic data has been disappointing since the September release,” the institute said today in an e-mailed statement. “These are consistent with slowing economic conditions before recovery from mid-2011.”

Slower near-term growth adds to signs that the central bank will keep its benchmark interest rate unchanged until the second quarter next year. Governor Alan Bollard last week lowered his 2010 growth forecast and increased his 2011 projection, saying rebuilding after a magnitude 7 earthquake that struck the South Island city of Christchurch in September will buoy activity over the next two years.

The quarterly survey includes the forecasts of the Reserve Bank, Treasury Department, seven bank economists and the institute.

(Source Bloomberg)