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
January 22, 2021
Consumer prices increased 0.5% in Q4 2020, coming in below Q3’s 0.7% rise.
January 4, 2021
The ANZ-Roy Morgan consumer confidence indicator jumped to 112.0 in December from November’s 106.9.
December 18, 2020
The ANZ bank business outlook indicator rose again in December, recording the highest print since September 2017.
New Zealand: Lifting of restrictions amid massive fiscal and monetary stimulus prompts massive rebound in Q3
December 17, 2020
GDP soared 14.0% in seasonally-adjusted quarter-on-quarter terms in Q3, benefiting from the easing of lockdowns and expansionary fiscal and monetary policies.
December 14, 2020
The ANZ bank business outlook indicator jumped in November, recording the highest print since September 2017.