NZ: June quarter GDP likely to rise by 0.9% - Westpac

Michael Gordon, Senior Economist at Westpac, suggests that they’re expecting a 0.9% rise in June quarter GDP of NZ, a marked improvement from the subdued growth in previous quarters.

Key Quotes

“In part, our forecast reflects some big one-off gains in particular sectors that are unlikely to be repeated.”

“The underlying story is of an economy that is trundling along slowly but steadily.”

“Our forecast is higher than the Reserve Bank’s low forecast of 0.5% growth – an important difference, given the increasing market speculation about OCR cuts.”

“We expect the annual current account deficit to widen a little in the latest quarter. However, revisions are likely to narrow the deficit over the last few years, further highlighting how New Zealand’s international position has improved in recent times.”