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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news