New Zealand Economic Outlook
June 21, 2022The economy shrank in sequential terms in the first quarter of this year. The spread of the Omicron variant and low travel activity owing to border restrictions were behind the poor reading. Available data paints a mixed picture for Q2. Electronic card transactions expanded solidly in April and May, likely supported by the easing of restrictions. Meanwhile, the reopening of borders facilitated the jump in border crossings in April. That said, the manufacturing PMI averaged lower in April compared to the first quarter. Moreover, consumer sentiment remained strongly downbeat in April-May amid elevated price pressures and rising interest rates. Additionally, business sentiment remained deeply pessimistic in the same period, signaling weak investment activity. In other news, the Central Bank recently lifted dividend restrictions on banks as the country’s monetary stance normalizes.
New Zealand Economic GrowthThe economy should expand at a softer pace this year than in 2021, partially due to a less favorable base effect. A tight labor market, pent-up spending and the recovery of the tourism industry amid the reopening of borders will sustain growth. That said, rising interest rates, higher energy prices and global supply constraints will limit the pace of expansion. FocusEconomics panelists project the economy to grow 2.6% in 2022, which is down 0.3 percentage points from last month’s estimate, and 2.5% in 2023.
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||1.67||1.20 %||Dec 30|
|Exchange Rate||0.67||-1.69 %||Jan 01|
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
June 17, 2022
GDP decreased 0.2% in seasonally-adjusted quarter-on-quarter terms in Q1 amid the spread of the Omicron variant and border restrictions.
May 31, 2022
The ANZ bank business outlook indicator dipped in May.
May 31, 2022
The ANZ-Roy Morgan consumer confidence indicator fell to 82.3 in May from April’s 84.4.
May 30, 2022
At its 25 May meeting, the Reserve Bank of New Zealand (RBNZ) decided to hike the official cash rate to 2.00% from 1.50%, marking the fifth consecutive increase.
May 5, 2022
The seasonally-adjusted unemployment rate remained stable in Q1 at Q4 2021’s 3.2%, which had marked the lowest print since 1986.