GDP in New Zealand
New Zealand - GDP
Growth jumps on buoyant consumer spending in Q3
The economy climbed 0.7% in quarter-on-quarter seasonally-adjusted terms in the third quarter, well above Q2’s revised 0.1% uptick (previously reported: +0.5% quarter-on-quarter seasonally-adjusted). Meanwhile, on a year-on-year basis, the economy rose 2.3% in Q3 from Q2’s 2.1%, which had marked the lowest reading in over five years.
The much stronger quarter-on quarter expansion in Q3 came on the back of a surge in domestic demand. Household spending expanded 0.8% in Q3, from 0.4% in the previous quarter, likely benefiting from declining interest rates stemming from the Central Bank’s easing stance. Moreover, and probably for the same reason, the performance of fixed investment improved from a 0.3% contraction in Q2 to a flat reading in Q3. Moreover, the increase in public spending almost doubled compared to Q2 (Q3: +1.3% qoq s.a.; Q2: +0.7% qoq s.a.).
Meanwhile, the external sector delivered a weak performance. Exports of goods and services fell 2.8%, following the 1.0% drop in Q2, amid external global headwinds. On the other hand, imports of goods and services jumped 2.3% following Q2’s flat reading boosted by stronger domestic demand.
Growth is projected to remain stable next year. Loose monetary conditions and a more supportive fiscal stance should buoy domestic demand. However, the external sector will lose strength, as export growth will soften and a firmer domestic economy will likely boost import growth. Moreover, weakness in China and Australia—major trade partners—and continued trade tensions cloud the outlook.
FocusEconomics panelists expect the economy to expand 2.4% in 2020, which is up 0.1 percentage points from last month’s estimate, and 2.5% in 2021.
New Zealand - GDP Data
|Economic Growth (GDP, annual variation in %)||3.6||3.5||3.9||3.1||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||1.67||1.20 %||Dec 30|
|Exchange Rate||0.67||-1.69 %||Jan 01|
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February 12, 2020
On 12 February, the Reserve Bank of New Zealand (RBNZ) kept the official cash rate (OCR) unchanged.
February 5, 2020
The seasonally-adjusted unemployment rate slip to 4.0% in Q4 from a revised 4.1% the previous quarter (previously reported: 4.2%).
February 5, 2020
The ANZ-Roy Morgan consumer confidence indicator dipped to 122.7 in January from December’s almost two-year high of 123.3, remaining comfortably above the 100-threshold that separates optimism from pessimism among consumers. Consumers had a worse assessment about their current financial situation compared to one year ago and their five-year general economic outlook was somewhat less upbeat.
January 24, 2020
Consumer prices increased 0.5% in Q4 2019 over the previous quarter, down slightly from Q3’s 0.7% rise but beating analysts’ expectations of a 0.4% increase, according to Statistics New Zealand.
December 20, 2019
The ANZ-Roy Morgan consumer confidence indicator rose to 123.3 in December (November: 120.7), moving further above the 100-threshold that separates optimism from pessimism among consumers and printing the best result since March 2018. Consumers grew more optimistic about their future personal finances and they had better assessments about their current financial situation compared to one year ago.