AVOID SELF FULFILLING PROPHESY: OECD REPORT OUT

The latest OECD "projections" covering New Zealand are largely in line with our own reading of external events, including the Asian crisis, says Deputy Prime Minister and Treasurer Winston Peters.

"We welcome publication of the report, and its findings are very much in line with our own assessment of developments."

Mr Peters said maintaining surpluses was a key part of the Coalition Government's fiscal policy.

The OECD had highlighted the importance of continuing microeconomic reforms "and we are continuing to pursue these with the announcement this week of reforms in the electricity generation and distribution area."

Mr Peters warned against people talking down the economy to the extent that such talk became a self fulfilling prophesy.