- Analytics
- News and Tools
- Market News
- New Zealand: GDP figures surprised to the downside in Q1 – UOB
New Zealand: GDP figures surprised to the downside in Q1 – UOB
Economist at UOB Group Lee Sue Ann reviews the latest GDP results in New Zealand.
Key Takeaways
“GDP unexpectedly contracted by 0.2% q/q in 1Q22, in contrast to the 3.0% q/q gain in 4Q21, and against expectations for a print of +0.6% q/q. The quarter was largely marked by the community spread of the Omicron COVID-19 variant, which saw low travel due to border restrictions. Compared to the same period one year ago, GDP rose by 1.2% y/y, following a 3.1% y/y print in 4Q21, and just half of expectations for a gain of 2.4% y/y.”
“We expect a stronger pickup in the subsequent two quarters (2Q22 and 3Q22) as the economy moves past the domestic COVID-19 disruptions. However, 4Q22 will likely see some loss of momentum as rising interest rates start to bite. This will set the scene for slower growth in 2023. Our GDP forecast for growth in 2022 has been lowered to 2.4% from 3.6% previously. For 2023, our forecast remains broadly unchanged at 3.0%.”
“Following the two back-to-back half-point increases in Apr and May, we expect the Reserve Bank of New Zealand (RBNZ) to tune back to the more usual pace of 25bps hikes from Jul onwards, bringing the Official Cash Rate (OCR) to 3.00% by year-end. The next RBNZ meeting is on 13 Jul.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
