The impacts of the COVID-19 coronavirus outbreak are being felt throughout New Zealand's economy.

The New Zealand Institute of Economic Research has released its latest quarterly predictions.

Principal Economist Christina Leung told Kate Hawkesby activity in the March quarter is expected to be flat.

“We expect the combination of coronavirus and the drought will have a short, sharp shock to the NZ economy and exporters will feel the brunt of these effects.”

Leung says there's a lot of uncertainty around the duration of the coronavirus outbreak, but it's expected the impact will only be temporary.

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