The International Monetary Fund says earthquakes that struck New Zealand in September and February are likely to hurt that country’s economy more than the recent disasters in Japan will affect Tokyo’s economy.
The IMF estimated that rebuilding after the Christchurch quakes will cost New Zealand about $ 12 billion, or about 7.5 per cent of its GDP – or gross domestic product.
IMF economists predicted that the quakes would wipe out about two percentage points of New Zealand’s economic growth this year, and that as a result the economy would grow by about one percent.
On a positive note, IMF said reconstruction work will push growth up to four percent next year.
New Zealand was struck by 6.3-magnitude earthquake in February, which was more destructive than the 7.1-magnitude quake in September.
Japan was hit by a 9.0-magnitude quake in March followed by a powerful tsunami, which crippled a nuclear power plant.
