Consumption in New Zealand
New Zealand - Consumption
Economic growth accelerates in Q2 amid lower restrictions
GDP expanded 2.8% in seasonally-adjusted quarter-on-quarter terms in Q2, as growth in external demand surged amid easing Covid-19 restrictions. The result was significantly above market expectations of a 1.3% rise and followed Q1’s 1.4% increase. Meanwhile, on an annual basis, GDP jumped 17.4% in Q2, following Q1’s 2.9% rise.
The quarterly acceleration came on the back of a marked improvement in foreign demand. Exports surged 17.0% in Q2 (Q1: -9.1% s.a. qoq), supported by the country’s travel bubble with Australia, while imports expanded 0.2% in the quarter after jumping 6.5% in Q1.
Meanwhile, domestic demand weakened considerably following Q1’s strong rebound. Private consumption contracted 1.4% (Q1: +5.6% s.a. qoq), amid lower spending on services. Moreover, fixed investment fell 2.0% in Q2 (Q1: +6.0% s.a. qoq), weighed down by declining expenditure on plant, machinery and equipment. Moreover, government spending growth lost pace (Q2: +0.4% s.a. qoq; Q1: +2.3% s.a. qoq).
Moving forward, the economy has likely lost steam in the third quarter, after the reimposition of a nationwide lockdown in August amid concerns over the Delta variant. Nevertheless, Lee Sue Ann, economist at United Overseas Bank, remains fairly positive on the outlook for this year, commenting:
“We expect to see a material decline in Q3 2021’s GDP. But we have revised our GDP forecast to 5.3% in 2021, an upgrade from 4.9% previously, in response to stronger-than-expected Q2 2021 GDP growth. Our forecast for 2022 has been trimmed to 3.2%, from our earlier projection of 3.3%, as border restrictions will likely stay in place next year, and amid a slow vaccine rollout.”
FocusEconomics panelists project the economy to grow 4.5% in 2021, which is unchanged from last month’s estimate, and 3.2% in 2022.
New Zealand - Consumption Data
|Consumption (annual variation in %)||3.6||5.6||5.2||3.2||2.7|
5 years of economic forecasts for more than 30 economic indicators.
New Zealand Facts
|Bond Yield||1.67||1.20 %||Dec 30|
|Exchange Rate||0.67||-1.69 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
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.
September 17, 2021
GDP expanded 2.8% in seasonally-adjusted quarter-on-quarter terms in Q2, as growth in external demand surged amid easing Covid-19 restrictions.
September 14, 2021
The ANZ-Roy Morgan consumer confidence indicator edged down to 109.6 in August from July’s 113.1.
September 14, 2021
The ANZ bank business outlook indicator improved in September.
August 4, 2021
The seasonally-adjusted unemployment rate dipped to 4.0% in Q2 2021 from 4.6% in the previous quarter, logging the lowest print in a year.
July 30, 2021
The ANZ-Roy Morgan consumer confidence indicator edged down to 113.1 in July from June’s 114.1.