GDP in New Zealand

New Zealand GDP | Economic News & Forecasts

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

2013  2014  2015  2016  2017  
Economic Growth (GDP, annual variation in %)2.2  3.6  3.5  4.0  2.9  

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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

ValueChangeDate
Bond Yield2.251.20 %Feb 14
Exchange Rate0.68-1.69 %Feb 14
Stock Market4,1170.11 %Feb 14

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