GDP in New Zealand
New Zealand - GDP
Growth slows to a near five-year low in Q3
According to data released by the Statistical Institute, quarter-on-quarter seasonally-adjusted national accounts for the third quarter were the weakest since late 2013. Headline growth presented a 0.3% month-on-month increase, down from Q2’s 1.0% outturn, undershooting analysts’ expectations. In annual terms, the economy grew by 2.6% in Q3, decelerating from Q2’s 3.2% increase.
The third-quarter slowdown reflected a decrease in output across major industries. Goods-producing industries logged a 1.0% quarter-on-quarter fall in production (Q2: +1.5% quarter-on-quarter seasonally-adjusted), hurt by an across-the-board contraction of subcomponents. In addition, service industries reported a meager 0.5% increase in output (Q2: +1.0% qoq s.a.), mainly amid weaker gains in wholesale and retail trade, and losses in the transport sector. On a more positive note, primary industries bounced back from a quarter prior (Q3: +2.2% qoq s.a., Q2: -0.1% qoq s.a.), on the back of recovering mining activity and despite slower agricultural production.
Growth is expected to remain stable this year, as a tight labor market and moderate price pressures benefit consumer’s bottom line. Low interest rates and ample space for increased fiscal stimulus are also seen supporting near-term growth prospects. Meanwhile, the major downside risk steams from an expected slowdown in China—New Zealand’s most important trading partner—as it could bruise export gains.
FocusEconomics Consensus Forecast panelists expect the economy to grow 2.7% in 2019, unchanged from last month’s forecast and 2.5% in 2020.
New Zealand - GDP Data
|Economic Growth (GDP, annual variation in %)||2.2||3.6||3.5||4.0||2.9|
5 years of economic forecasts for more than 30 economic indicators.
New Zealand GDP Chart
Source: Statistics New Zealand and FocusEconomics calculations.
New Zealand Facts
|Bond Yield||2.25||1.20 %||Feb 14|
|Exchange Rate||0.68||-1.69 %||Feb 14|
|Stock Market||4,117||0.11 %||Feb 14|
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February 13, 2019
At its first meeting of the year, held on 13 February, the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) unchanged at a record-low of 1.75%, where it has been since November 2016.
February 6, 2019
After two years of continued labor market tightening, New Zealand’s unemployment rate rose in the fourth quarter of 2018.
February 1, 2019
The ANZ-Roy Morgan consumer confidence indicator inched down to 121.7 in January, from December’s 121.9.
January 22, 2019
According to Statistics New Zealand, consumer prices rose 0.1% in Q4 over the previous quarter, decelerating from Q3’s 0.9% increase.
December 21, 2018
The ANZ-Roy Morgan consumer confidence indicator rose to 121.9 in December from 118.6 in November, marking a second consecutive monthly increase after trending down for five-months.