New Zealand's economy will continue to grow despite declining oil prices and the strengthening of the Kiwi dollar. Exports may be hampered by the global drop in oil prices, but New Zealand Prime Minister John Key believes that the economy will keep on booming.

Mr Key told CNBC that a strong New Zealand dollar will not be an obstacle to the country's economy. The local currency has increased to over 8 percent against the euro in the last three months as expectations soar for the European Central Bank to announce a full-blown quantitative easing programme.

The New Zealand dollar has rallied to a record-high against the euro last week, following the surprise policy of the Swiss National Bank to leave its minimum exchange rate. Mr Key said the strengthening of the local currency has affected exports, but the economy is "still very strong." He believes New Zealand's economic growth will be 3.25 percent every year for the next three years. The prime minister remains confident that the economy can achieve its target even with a higher exchange rate.

Statistics New Zealand said in December that the economy has grown faster than expected in the third quarter. The country's gross domestic product has gained 1 percent in the same quarter.

Mr Key said the economic activity in the U.S. has helped New Zealand. He dismissed concerns of economic slowdown in Asia, particularly China. He explained that the U.S. economy is stronger now with the boom of tourism and high consumer spending. Although there was some concern that China's economy may slump, he thinks it will not happen.

New Zealand's economic growth was spurred by primary industries like milk and oil and gas exploration. Dairy is the country's main export product, followed by meat, wood and oil. In terms of decline in commodity prices, Mr Key remained confident that dairy prices can recover.

Meanwhile, HSBC's economic outlook for New Zealand remains positive as it is predicted to boom in 2015, Newstalk reported. Paul Bloxham, the economist who described the Kiwi economy as a "rock star" in 2014, said the show will go on for the country.

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