New Zealand Economic Outlook
November 14, 2017Jacinda Ardern was sworn in as Prime Minister on 26 October, after her Labour Party formed a coalition with NZ First. However, both parties are relying on the support of the Greens for a parliamentary majority. The new government swiftly moved to ban foreigners from buying existing homes in a bid to cool the housing market, and announced a review of the Central Bank’s mandate, with a view to prioritizing employment. The latter change would enable more expansionary fiscal policy without necessarily provoking a tighter monetary stance; the new administration is expected to spend significantly more on health, education and a homebuilding program over the coming years. On the international front, the government has renegotiated aspects of the Trans-Pacific Partnership, clearing the way for New Zealand to sign the deal. However, firms still remain wary of the possibility of greater protectionism and a clamp down on immigration, as evidenced by a sharp fall in business confidence in October. Other economic indicators are more positive: Consumer confidence remained well in positive territory in the same month, while the unemployment rate dipped to a multi-year low in Q3.
New Zealand Economic GrowthGoing forward, the economy should be buoyed by looser fiscal policy and low interest rates. However, slow improvements in productivity and a shortage of skilled labor will drag on growth. Panelists surveyed this month 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||2.78||1.20 %||Dec 06|
|Exchange Rate||0.69||-1.69 %||Dec 06|
|Stock Market||3,733||0.11 %||Dec 06|
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New Zealand Economic News
November 30, 2017
Economic sentiment among New Zealand businesses declined for the fifth consecutive month in November, and plunged further into negative territory.
November 16, 2017
The ANZ-Roy Morgan consumer confidence indicator dropped in November for the second consecutive month, from 126.3 in October to 123.7 in November, marking a seven-month low.
November 9, 2017
At its meeting on 9 November, 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 ticked up in Q3 towards the midpoint of the Bank’s 1.0%–3.0% target range.
November 3, 2017
Economic sentiment among New Zealand businesses declined for the fourth consecutive month in October, and dipped into negative territory for the first time since September 2015.
November 1, 2017
New Zealand’s labor market continued to strengthen in Q3.