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

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news