New Zealand is predicted to be on a "pure economic expansion" in 2015 as the country has passed its economic recovery phase and is now on a growth stage. ANZ chief economist Cameron Bagrie said the New Zealand economy is expected to grow as it did not experience a decline since 2010.

According to Stuff.co, New Zealand has reduced unemployment rates, strong migration figures, stable salary increase and the New Zealand dollar almost in reaching parity with the Australian dollar. Statistics New Zealand had reported a record-high net gain of 49,800 migrants. There were more arrivals and less number of departures of permanent and long-term migrants.

The unemployment rate in New Zealand was 5.4 percent in the September quarter from 5.6 percent in the June quarter. The New Zealand dollar had recently reached its highest level against the Australian dollar at 95.73 Australian cents, raising the possible parity between the two currencies for the first time.

Bagrie said New Zealand's economy may be largely due to the Christchurch rebuild and the housing boom in Auckland, but the growth has become more widespread. Regions like Central Otago, Queenstown and Tauranga are observed to be performing well.

The economist explained that it took New Zealand a while before returning to a reasonable level of economic growth after it was hit by the global financial crisis between 2008 and 2010. Bagrie said the country's economy may have grown beginning 2008. New Zealand businesses had focused on reducing debt, boosted productivity and collaborated more with other industries.

New Zealand is expected to face some challenges ahead, including the high level of household debt, overvalued property market and a current account deficit. More goods, services and capital were being brought in than shipped out. Bargie noted that Australia's economy is in a "different place" than New Zealand.

Meanwhile, Stuart Ive, a senior dealer foreign exchange at OMF in Wellington, said the New Zealand dollar is above 77 U.S. cents with more room for a further increase, according to a press release. The Reserve Bank of New Zealand is expected to keep a close watch on the housing market where prices are soaring. Since the country has high debt levels, New Zealand cannot afford to have a property bubble.

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