Monthly Economic Indicators March 2016

The March Monthly Economic Indicators (MEI) was published today on the Treasury Website at 2:00pm. The report provides a summary of recent economic events.

The main points:

• Real GDP grew by a stronger than expected 0.9% in the December quarter. Growth strengthened markedly in the second half of 2015.

• Growth is expected to moderate in the first half of 2016, as subdued farm incomes weigh on business investment.

• Lower terms of trade and low inflation dampened nominal GDP, and the terms of trade may fall further as dairy prices declined in early 2016.

• The annual current account deficit narrowed on the back of growth in export services.

Last month, Treasury officials met with 25 businesses in Auckland, Wellington and Christchurch to discuss the outlook for the economy. Their views are summarised in this month’s Special Topic: March 2016 Business Talks.

Read more at: http://www.treasury.govt.nz/economy/mei/mar16

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