New Zealand Economic Outlook
July 17, 2018The economy lost some momentum at the start of the year, with quarter-on-quarter GDP growth moderating to 0.5% in Q1, following 0.6% expansions in each of the previous two quarters. Growth came primarily on the back of the services sector, with the information and telecommunications industry contributing the most to the first-quarter expansion. Available data points to a continuation of relatively soft economic activity in Q2. Consumer confidence lost strength in the quarter, while debit and credit card spending fell, suggesting waning private consumption growth in Q2. Moreover, downbeat business sentiment persisted throughout the quarter, reflecting firms’ reduced employment and investment intentions. The external sector yielded more positive results, however, with the trade balance recording healthy surpluses in April–May as exports continue to benefit from solid Chinese demand.
New Zealand Economic GrowthAlthough the economy has lost some steam in recent months, growth is expected to remain robust going forward. Government plans to lift spending, an accommodative monetary policy stance, favorable export prices, and a tight labor market underpin the outlook. High levels of household debt remain a key downside risk, however, given the increased debt-service burden on borrowers if interest rates were to rise significantly. Met the why particular panelists expect the economy to expand 2.7% in 2018, down 0.2 percentage points from last month’s forecast, and 2.7% again in 2019.
New Zealand Economy Data
5 years of New Zealand economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
New Zealand Facts
|Bond Yield||2.91||1.20 %||Jul 17|
|Exchange Rate||0.68||-1.69 %||Jul 17|
|Stock Market||4,051||0.11 %||Jul 17|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
New Zealand Economic News
July 17, 2018
Consumer prices rose 0.4% in Q2 over the previous quarter according to Statistics New Zealand, slightly below Q1’s 0.5% rise.
June 28, 2018
At its 28 June meeting, the Reserve Bank of New Zealand (RBNZ) met market analysts’ expectations and kept the Official Cash Rate (OCR) unchanged at a record-low 1.75%, where it has been since November 2016.
June 27, 2018
The ANZ-Roy Morgan consumer confidence indicator edged down from 121.0 in May to 120.0 in June, marking the lowest print since August 2016.
June 27, 2018
The ANZ Bank Business Outlook indicator showed that a net 39.0% of surveyed firms were pessimistic about the year ahead in June, a much higher proportion than May’s 27.2%.
June 21, 2018
Economic growth continued at a steady pace in the first quarter of 2018, according to data released by the Statistical Institute on 21 June.