New Zealand Economic Outlook
October 15, 2019Growth weakened slightly in Q2, as a downturn in construction weighed on fixed investment. A pick-up in private consumption, amid falling unemployment and ultra-loose monetary conditions, cushioned the deceleration, however. Turning to Q3, a slowdown in credit-card transactions, coupled with a continued slide in consumer confidence, suggests household spending eased. Moreover, business confidence turned markedly more pessimistic, tumbling to an over 11-year low in September, while the PMI slipped into contractionary territory in the quarter, hinting at dimmer prospects for private sector activity. On the upside, the Treasury posted an NZD 7.5 billion surplus in FY 2019, the biggest in 11 years. While higher-than-expected corporate profits, employment gains and wage growth have boosted the government’s coffers, the sizeable surplus also reflects one-time factors, including NZD 2 billion from the revaluation of rail assets.
New Zealand Economic GrowthThe economy should keep pace next year. Domestic demand is poised to strengthen on a looser fiscal stance and accommodative monetary conditions. That said, fixed investment and the external sector are set for a slowdown. Downside risks include weaker-than-expected performances in China and Australia, as well as a resurgence of global trade wars. FocusEconomics panelists expect the economy to expand 2.4% in 2020, which is down 0.1 percentage points from last month’s estimate, and 2.5% in 2021.
New Zealand Economy Data
5 years of New Zealand economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
New Zealand Facts
|Bond Yield||1.06||1.20 %||Sep 04|
|Exchange Rate||0.64||-1.69 %||Sep 04|
|Stock Market||4,778||0.11 %||Sep 04|
Request a 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
October 16, 2019
Consumer prices increased 0.7% in Q3 2019 over the previous quarter, up slightly from Q2’s 0.6% rise, according to Statistics New Zealand.
September 30, 2019
The ANZ-Roy Morgan consumer confidence indicator fell to 113.9 in September (August: 118.2), moving closer to the 100-point threshold that separates optimism from pessimism among consumers and printing the worst result in four years. Consumers had worse assessments about their current financial situation compared to one year ago, and they also grew less optimistic about their future personal finances.
September 30, 2019
The ANZ bank business outlook indicator fell by 1.2 points in September, with a net 53.5% of firms reporting that they expect general business conditions to deteriorate in the year ahead.
September 25, 2019
On 25 September, the Reserve Bank of New Zealand (RBNZ) kept the official cash rate (OCR) unchanged, following a surprise 50-basis-point cut at August’s meeting.
September 19, 2019
The economy grew 0.5% in quarter-on-quarter seasonally-adjusted terms in the second quarter, slightly below Q1’s 0.6% expansion.