GDP in New Zealand

New Zealand GDP | Economic News & Forecasts

New Zealand - GDP

Lifting of restrictions amid massive fiscal and monetary stimulus prompts massive rebound in Q3

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. The result beat market expectations of a 13.5% increase and contrasted Q2’s 11.0% slump. Meanwhile, on an annual basis, the economy expanded 0.4% in Q3, contrasting Q2’s 11.3% plunge.

The quarterly bounce-back was largely driven by a massive rebound in domestic demand. Private consumption surged 14.8% (Q2: -12.1% s.a. qoq) amid recovering consumer confidence. In addition, fixed investment jumped (Q3: +27.1% s.a. qoq; Q2: -20.1% s.a. qoq) on the back of soaring residential building investment, thanks to the reopening of businesses and strengthening business conditions. However, government spending growth lost pace (Q3: +0.3% s.a. qoq; Q2: +1.4% s.a. qoq).

The external sector, meanwhile, dragged on the economy, as imports rebounded at a stronger pace than exports. Exports grew 4.9% in Q3 (Q2: -15.5% s.a. qoq), still weighed down by continued international travel bans, while imports expanded 10.6% in the quarter after plummeting 24.6% in Q2, mainly due to higher demand for intermediate goods.

Looking ahead, the economy is poised to rebound next year, following this year’s Covid-19-induced slump, supported by fiscal and monetary stimulus and the reopening of the global economy. That said, uncertainty over the evolution and duration of the pandemic and the distribution of vaccines clouds the outlook.

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 - GDP Data

2015   2016   2017   2018   2019  
Economic Growth (GDP, annual variation in %)3.5  3.9  3.1  3.2  2.3  

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New Zealand GDP Chart


New Zealand GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Statistics New Zealand and FocusEconomics calculations.

New Zealand Facts

Value Change Date
Bond Yield1.671.20 %Dec 30
Exchange Rate0.67-1.69 %Jan 01

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