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

 


New Zealand in 2014: Firing on all cylinders

HSBC Global Research

New Zealand in 2014: Firing on all cylinders

Growth is picking up pace in New Zealand and we expect the trend to continue through 2014 

- Post-earthquake reconstruction, a local housing boom and high export prices should support broad-based economic growth 

- We expect NZ dollar strength, underpinned by the healthy domestic economy, to remain a headwind for trade-exposed sectors 

After a number of years in the doldrums, we expect New Zealand’s growth to pick up strongly in 2014. Our forecasts for the coming year suggest that New Zealand is likely to outperform almost all other OECD economies (the exceptions are Chile, Israel and Mexico). 

Growth is expected to be supported by three key factors. First, a substantial post-earthquake reconstruction effort in the Canterbury region, following the earthquakes in 2010 and 2011. Rebuilding has already begun and is expected to run for a number of years yet. Second, a local housing boom, which is already underway and expected to continue. This boom has been fuelled by a combination of low interest rates and weak supply of housing, due to under-investment in recent years. Third, dairy export prices have ramped up substantially in recent years as a result of strong Asian demand. This is lifting rural incomes. Overall, annual GDP growth is expected to pick up to 3.4% in 2014 from 2.8% in 2013. 

HSBC_Research_NZ_in_2014__Firing_on_all_cylinders_2014.01.10.pdf.zip

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news