NZ economy facing hit from major earthquake impact

CHRISTCHURCH, New Zealand: New Zealand's prime minister warned Monday that the country's economic recovery will be hurt by the weekend's powerful 7.1-magnitude earthquake that smashed buildings and wrecked roads and rail lines in the city of Christchurch.

"There will be considerable disruption to the (regional) and national economy in the short term," but activity should pick up as reconstruction gains momentum, Prime Minister John Key said. The country's economy has now recorded two quarters of minor growth after struggling to escape 18 months of recession.