The report was more optimistic over the outlook for the New Zealand economy, where growth was tipped at 3. 3 per cent for 2014, up from the 2. 7 per cent achieved in 2013. "Higher net immigration, better prospects for the dairy industry, and the reconstruction activities" from the Christchurch and Canterbury earthquakes of 2010 and 2011 would continue to support the economy.
The UN's annual economic survey for the Asia Pacific noted that weak labour conditions "would help keep a lid on inflation", but commodity exports would continue to play a key role in the outlook despite China's policy shift to domestic-led growth resulting in a softening of demand.
Australia's economy faces "sluggish" growth amid warnings of an asset bubble in the property sector that needs to be "closely monitored", the United Nations says in its latest economic report for Asia and the Pacific.
The UN report forecasts economic growth for Australia of 2. 8 per cent in 2014, "due to falling mining investments, fiscal restraint and fragile private consumption", ahead of the 2. 3 per cent set for 2013.
The report added that surging house prices and monetary policy tightening in the United States "may push up interest rates, placing strains on investments and consumer spending".
Read more here: Business Spectator