New Zealand GDP

New Zealand

New Zealand: GDP growth accelerates in Q3

December 21, 2015

In the third quarter of 2015, GDP increased a seasonally-adjusted 0.9% over the previous quarter, which marked anacceleration over the 0.3% expansion observed in Q2 and marked the highest reading since Q4 2014. The print slightly overshot market expectations of a 0.8% increase. Compared to the same quarter of the previous year, GDP increased 2.3% in Q3, which marked the softest increase since Q4 2013 (Q2: +2.4% year-on-year).

Q3’s acceleration was mainly driven by significant improvements in manufacturing and services industries. Goods producing industries increased from Q2’s 0.2% rise to 0.5% growth in Q3. Manufacturing industries rose 2.9% in Q3 (Q2: -0.5% quarter-on-quarter) and construction activities swung from Q2’s 0.5% rise to a 3.0% fall in Q3. Electricity, gas and water decreased 0.7% in Q3 (Q2: +2.0% qoq). Growth in services accelerated from 0.1% in Q2 to 0.9% in Q3.

On an expenditure basis, in Q3 GDP grew 1.2% over the previous period, which was above Q2’s 0.7% expansion and marked the highest value since Q1 2014. The print reflected a rebound in the external sector. Total consumption grew 0.4% over the previous quarter, which was below Q2’s 0.7%. Private consumption rose 0.6% (Q2: +0.6%) and government consumption fell 0.5% (Q2: +1.0%). Fixed investment accelerated from its 1.2% rise recorded in Q2 and grew 2.7% in Q3. The external sector rebounded as exports swung from a 0.1% decrease to a 1.9% rise in Q3. In addition, imports fell 2.8% (Q2: +1.7% qoq). Consequently, the external sector’s net contribution to overall economic growth swung from minus 0.6 percentage points in Q2 to plus 1.5 percentage points in Q3.

FocusEconomics Consensus Forecast panelists expect the economy to grow 2.9% in 2016, which is unchanged from last month’s forecast. For 2017, the panel sees the economy expanding 2.5%.


Author:, Economist

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New Zealand GDP Q3 2015

Note: Quarter-on-quarter changes of seasonally adjusted GDP in %.
Source: Statistics New Zealand and FocusEconomics Consensus Forecast.


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