2011.03.0322:44:00UTC+00IMF To Cut New Zealand Growth Forecast

The International Monetary Fund said on Thursday that it is likely to revise down its economic growth forecast for New Zealand following last week's devastating earthquake in Christchurch.

The fund said it will be sending a delegation to the Pacific nation at the end of next week to assess the economic damage from the quake.

The death toll from the 6.3-magnitude quake currently stands above 160, although officials say it could be as high as 240 as many are reported missing.

The disaster is expected to cost the New Zealand economy upto NZ$20 billion (US$14.9 billion).

"There will, of course, be some impact on economic activity [from the quake]," IMF director Caroline Atkinson said.

"It's often a little hard to work out just what that will be because in addition to the destruction, there is then rebuilding that tends to offset some of the impact on output."

She said the IMF's 3% 2011 growth forecast for New Zealand will likely be reduced "somewhat," and that it will be known by what extent once the fund's delegation completes its staff visit.