GDP in New Zealand
New Zealand - GDP
Growth accelerates in Q4 2018
According to data released by the Statistical Institute, the economy grew 0.6% in quarter-on-quarter seasonally-adjusted terms in the fourth quarter of last year, up from Q3’s 0.3% outturn and in line with analysts’ expectations. However, on a year-on-year basis, the economy slowed more than expected, coming in at 2.3%, which marks the lowest print in five years (Q3: +2.6% year-on-year). Looking at 2018 as a whole, GDP growth moderated to 2.8%, following 2017’s 3.1% expansion.
The fourth-quarter uptick was chiefly led by the service industry, which recorded the sharpest increase amid strong activity in the retail and accommodation sectors (Q4: +0.9% quarter-on-quarter seasonally-adjusted; Q3: +0.5% qoq s.a.). In addition, goods-producing industries rebounded from a quarter earlier (Q4: +0.2% qoq s.a.; Q3: -0.9% qoq s.a.), powered by sturdy construction activity. However, manufacturing and utilities supply contracted for a consecutive quarter, while primary industries contracted 0.8% in Q4, a marked contrast from Q3’s 2.3% expansion, owing to plummeting mining and agricultural activity.
On the expenditure side, quarter-on-quarter private consumption accelerated in the fourth quarter. In addition, fixed investment and government spending both rebounded in the same period. On the external side, exports bounced back in Q4, whereas imports contracted for a second consecutive quarter.
Growth is seen easing this year amid a broad-base deceleration of domestic demand and an uncertain international backdrop. Notably, investment is set to wane as tighter financial conditions and reduced profitability weigh on business sentiment. Meanwhile, the slowdown in China and Europe is set to erode demand for dairy products, New Zealand’s main export.
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||2.35||1.20 %||Jan 30|
|Exchange Rate||0.69||-1.69 %||Jan 30|
|Stock Market||3,958||0.11 %||Jan 30|
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April 17, 2019
Consumer prices rose 0.1% in Q1 2019 over the previous quarter, matching Q4 2018’s uptick, according to Statistics New Zealand.
March 29, 2019
The ANZ-Roy Morgan consumer confidence indicator ticked up to 121.8 in March, from February’s 120.8.
March 28, 2019
The ANZ bank business outlook indicator started the year on weaker footing after recording a second consecutive drop in March, which pushed the index further down into pessimistic territory.
March 27, 2019
At its second meeting of the year, on 27 March, 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.
March 19, 2019
According to data released by the Statistical Institute, the economy grew 0.6% in quarter-on-quarter seasonally-adjusted terms in the fourth quarter of last year, up from Q3’s 0.3% outturn and in line with analysts’ expectations.