New Zealand Economic Outlook
January 23, 2018The economy slowed in the third quarter according to recent figures. Growth was dragged down by a weak agricultural sector, although construction grew strongly thanks to greater investment in infrastructure and residential housing. Historical GDP growth was also revised upwards significantly, suggesting that the economy was more productive in recent years than previously thought. Indicators for Q4 were mixed: in December, business confidence remained deep in negative territory, while consumer confidence was robust despite moderating. However, very dry conditions in several areas of the country likely hampered agricultural production in the quarter. The new government is currently working on measures as part of its 100-day plan. Student aid was increased from the start of the year; the minimum wage is set to rise by close to 5% from 1 April; and a law to limit foreign property buyers is currently in parliament. In mid-December, the budget policy statement announced the new administration’s intention to boost spending on health, education and conservation as part of the 2018 budget, to be released later this year.
New Zealand Economic GrowthGoing forward, the economy should be supported by looser fiscal policy and low interest rates. However, a likely slowdown in the housing market will drag on private consumption. In addition, pessimistic business sentiment also risks dampening investment and job creation. Panelists surveyed this month by FocusEconomics expect the economy to expand 2.9% in 2018, unchanged from last month’s forecast, and 2.6% in 2019.
New Zealand Economy Data
5 years of New Zealand economic forecasts for more than 30 economic indicators.
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New Zealand Facts
|Bond Yield||2.96||1.20 %||Feb 14|
|Exchange Rate||0.74||-1.69 %||Feb 14|
|Stock Market||3,699||0.11 %||Feb 14|
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New Zealand Economic News
February 8, 2018
At its meeting on 8 February, 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. The Central Bank’s latest decision came soon after the Statistical Institute revealed that inflation fell in Q4, moving further from the midpoint of the Bank’s 1.0%–3.0% target range.
February 6, 2018
New Zealand’s labor market continued to strengthen in Q4.
February 2, 2018
The ANZ-Roy Morgan consumer confidence indicator shot up in January following three months of declines.
January 12, 2018
The ANZ-Roy Morgan consumer confidence indicator dropped in December for the second consecutive month, from 123.7 in November to 121.8, marking the lowest reading since April.
December 20, 2017
The economy lost momentum in Q3, according to data released by the Statistical Institute on 20 December.