- Analytics
- News and Tools
- Market News
- New Zealand’s economy to see subdued growth for the two years ahead – NZIER
New Zealand’s economy to see subdued growth for the two years ahead – NZIER
Ahead of New Zealand’s (NZ) official Gross Domestic Product (GDP) data release this week, the New Zealand Institute of Economic Research (NZIER) is out with its Consensus Forecasts of the country’s growth and inflation numbers.
Key takeaways
Annual average GDP growth is forecast to slow to 0.4 percent in the year to March 2024 before recovering to just 1.1 percent in 2025.
Higher interest rates are starting to dampen demand as the impact of previous increases in the Reserve Bank’s Official Cash rate (OCR) is transmitting through to the broader economy.
Added to this is the downside risk from weaker demand for New Zealand exports, primarily due to the weaker growth outlook in China.
Offsetting these are the upside risks from the strong recovery in net migration, which will likely support demand over the coming years.
The inflation outlook for the year ending March 2024 has been revised higher. Annual CPI inflation is forecast to ease to 4.3 percent before decreasing to 2.4 percent in 2025.
Market reaction
At the time of writing, NZD/USD is paring back gain on the grim outlook for the NZ economy, adding 0.15% on the day to trade at 0.5908, down from intraday highs of 0.5919.
© 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
