New Zealand Economic Outlook
November 17, 2020The economy likely recovered in Q3 and conditions remain upbeat in Q4. Electronic card transactions rose notably in Q3, which, coupled with higher consumer confidence, points to stronger household spending, although a jump in the unemployment rate calls for caution. Similarly, improved business sentiment suggests that private sector activity bounced back in Q3. Moving to Q4, rising business and consumer confidence in October bodes well for activity. Meanwhile, Prime Minister Jacinda Ardern secured support from the Green Party for her next term in government. She named a new cabinet whose main focus will be on the economic recovery, as indicated by the appointment of Finance Minister Grant Robertson as deputy prime minister. The new government announced it will extend the small business loan scheme and boost funding for the flexi-wage job support program.
New Zealand Economic GrowthGDP should rebound in 2021, after diving this year. Resurgent investment activity and private consumption, helped by expansionary fiscal and monetary policies, will support domestic demand, and the gradual reopening of the global economy will boost the external sector. While further Covid-19 waves could restrain growth, the prospect of a vaccine bodes well for the outlook. FocusEconomics panelists project the economy to grow 4.5% in 2021, which is unchanged from last month’s estimate, and 2.9% in 2022.
New Zealand Economy Data
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New Zealand Facts
|Bond Yield||1.67||1.20 %||Dec 30|
|Exchange Rate||0.67||-1.69 %||Jan 01|
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New Zealand Economic News
April 1, 2021
The ANZ-Roy Morgan consumer confidence indicator dipped to 110.8 in March from February’s 113.1.
New Zealand: The economy swings back to contraction in Q4 as border closure hits tourism sector hard
March 18, 2021
GDP dropped 1.0% in seasonally-adjusted quarter-on-quarter terms in Q4 2020, as the important tourism sector was weighed down by border closures in the peak season.
March 11, 2021
The ANZ bank business outlook indicator slumped in March.
March 1, 2021
The ANZ-Roy Morgan consumer confidence indicator dipped to 113.1 in February from January’s 113.9, which had marked the best print in 11 months.
February 24, 2021
At its meeting on 24 February, the Reserve Bank of New Zealand (RBNZ) decided to hold the official cash rate (OCR) steady at its record low of 0.25%, and at the same time left the scale of its monetary stimulus program unchanged.