The economy could be slowing down more than expected

NZIER is revising down its forecasts for annual average GDP growth, to 0.2 percent in the year to March this year, and 0.6 percent in the year to March next year.

It says high interest rates are continuing to dampen demand.

But Principal Economist Christina Leung says strong migration growth should ensure the economy starts growing again.

She says migration is expected to support demand across a range of areas, particularly when it comes to construction.