Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ Growth Was Strong – But Big Slowdown Ahead

NZ Growth Was Strong – But Big Slowdown Ahead


Statistics NZ released data showing the NZ economy officially grew by 0.8% during the December quarter which is right on the long term average growth of 0.8% per quarter. In the entire 2002 year growth was 4.4% versus a ten year average of 3.5%. Growth was a below average 2.7% during 2001.


Strong growth over 2002 was mainly caused by booming house construction up 20.4%, spending by consumers on durable goods up 8.3%, and 6.6% growth in capital expenditure on plant, machinery & equipment. Export growth was strong at 7.6% but this was more than offset by import growth of 8.8%. Factors driving the stronger than average growth included

surging inward migration, below average interest rates, feed-through of record farm incomes, upturn in the housing cycle.

The easing of growth to 0.8% in the December quarter and 0.9% the previous quarter from 1.7% in the June quarter partly reflected lower wood processing and machinery manufacturing.


Hardly anyone directly because these data are so out of date – some 4.5 months from the quarter mid-point of mid-November. The focus of us economists is on leading indicators like confidence measures plus more up to date measures of actual activity like dwelling sales and consents, retail spending etc.

Not borrowers because the 0.8% quarterly growth was what the Reserve Bank expected so there are no interest rate implications.


No. The NZ economy cannot continue growing at 4.4% per annum because we don’t have the resources be they

skilled and unskilled employees, good roads, sufficient electricity to avoid brownouts, business machinery etc.

Also there are many negatives hitting demand including

drought, lower commodity prices, the rising exchange rate hitting export returns, depressed world growth amid war, oil price and sharemarket worries,

We forecast growth near 2.5% this year with the risk it comes in below this slightly but with support from migration, low interest rates, and education of foreigners.

© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news