Friends First is predicing growth of 2 percent or slightly higher.
The Life Assurance company says there are challenges, including a reduction in Government debt and the on-going mortgage arrears crisis.
They claim that if the coalition tackles issues such as the mortgage arrears crisis and the banking system our economy could be on the path to recovery.
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Friends First's chief economist Jim Power spoke to Newstalk's Breakfast and explained to us their findings:
