Investment in New Zealand

New Zealand - Investment
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 - Investment Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Investment (annual variation in %) | 4.0 | 3.4 | 5.0 | 5.3 | 2.7 |
New Zealand Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 1.67 | 1.20 % | Dec 30 |
Exchange Rate | 0.67 | -1.69 % | Jan 01 |
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Economic News
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New Zealand: RBNZ stands pat in February
February 24, 2021
At its meeting on 24 February, the Reserve Bank of New Zealand (RBNZ) decided to hold the official cash rate (OCR) steady at its record low of 0.25%, and at the same time left the scale of its monetary stimulus program unchanged.
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New Zealand: Consumer confidence strengthens in January
February 8, 2021
The ANZ-Roy Morgan consumer confidence indicator rose to 113.8 in January from December’s 112.0.
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New Zealand: Business confidence at over three-year high in February
February 8, 2021
The ANZ bank business outlook indicator rose again in February, recording the highest print since September 2017.
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New Zealand: Unemployment drops in Q4
February 3, 2021
The seasonally-adjusted unemployment rate fell to 4.9% in Q4 from 5.3% in the previous quarter, which had marked the highest print since Q4 2016.
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New Zealand: Inflation stable in Q4
January 22, 2021
Consumer prices increased 0.5% in Q4 2020, coming in below Q3’s 0.7% rise.