Flood cost 1pc of GDP

Wellington economist Gareth Morgan predicts that recent floods will wipe 1 per cent off New Zealand's gross domestic product.

In Palmerston North last night, Dr Morgan said Cyclone Bola in 1988 took 0.3 per cent off GDP.

He did not give figures, but on estimated GDP figures of $126 billion for the March 2004 year, 1 per cent would amount to about $1.26 billion.

Dr Morgan said his company had estimated the percentage after studying the industries affected.

But he said the region should not be too badly hurt because of a flurry of repair activity.