An International Monetary Fund report into New Zealand's economy warns its pandemic-era growth record is over, with darker days ahead.
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The IMF's profile, released on Tuesday, says the country's inflation nightmare will persist longer than believed locally.
The Reserve Bank believes inflation will return to the target band by September next year, but the IMF has tipped 2025.
The paper makes for grim reading for Kiwis, already in a technical recession, without a pathway back to growth enjoyed in recent years.
"New Zealand has entered a marked, but orderly, policy-induced slowdown," it reads.
"Monetary policy has been appropriately tightened to address the above-target inflation and unsustainably low unemployment rate.
"The external balance has deteriorated significantly, reflecting the economic overheating of recent years.
"The housing market continues to correct, and although financial stability risks appear contained, affordability remains a concern."
NZ was top of the pack for growth during the pandemic, growing 10.2 per cent from mid-2020 to the start of 2023.
However, it has since slumped, falling into a technical recession with a contraction of 0.8 per cent in the six months to March 2023.
Among advanced economies, Australia was next best at 8.8 per cent, with the United States at 7.6 per cent, Eurozone at 7.1 per cent, and United Kingdom at 6.1 per cent.
The growth outlook is weak, with the IMF predicting just 1.1 per cent real GDP growth this year and 0.8 per cent in 2024 (compared with 1.6 and 1.7 per cent for Australia).
Asked about the growth predictions, Prime Minister Chris Hipkins - in campaign mode ahead of the October election - instead pivoted to past years.
"We've had stronger economic growth under our government than under the last National government and that's despite the global pandemic," he said.
"Should we be aiming to grow the New Zealand economy faster? Absolutely."
Opposition leader Chris Luxon said the National party would do more to fight inflation "causing huge pain and suffering for New Zealanders".
"We have to work out how to growth this economy ... we've got to rediscover some positivity, some ambition and aspiration."
The IMF report ticks off the government for its May budget which it saw as overly stimulatory.
As if to pre-empt the report, Finance Minister Grant Robertson announced public sector cuts on Monday, totalling almost $NZ4 billion ($A3.7 billion) over four years.
Mr Luxon attacked Mr Robertson's sluggishness to tackle public sector spending.
"He refused to make adjustments 18 months ago, refused to make adjustments 12 months ago, refused to make adjustments six months ago," he said.
"Forty-six days out from an election he miraculously finds that there's some waste on the system. We've been saying that for an awful amount of time."
Australian Associated Press
