83017
The economy could continue to expand in a 2.5% to 3% range.
The economy could continue to expand in a 2.5% to 3% range.

Indicators Show NZ Economic Growth Robust

Indicators Show NZ Economic Growth Robust

The New Zealand economy is in an enviable state, Bank of New Zealand head of research Stephen Toplis said Monday. Growth was robust, employment prospects were good, the housing market was stable and global demand was supportive.
New Zealand had fiscal surpluses and interest rates were low. “From here, though, things get a bit more difficult and we expect economic growth to moderate despite significant fiscal stimulus,” RTTNews reported.
But, barring a major asset price corruption, induced by global monetary tightening, the prospects remained “relatively sound” for the medium-term, he said.
Global growth was firing on all cylinders. The consensus of expectations for the world for the next 12 months was sitting just below its highest level since 2011. Importantly, the growth was being shared widely, giving an air of sustainability many past cycles did not share, Toplis said.
New Zealand’s trading partner expansion appeared to be peaking and nervousness about the potential impact of monetary tightening was beginning to spread. “We remain cautiously optimistic but equally mindful a significant asset price correction could yet prove destabilizing.”
New Zealand gross domestic product economic growth had been moderating, he said. On an annual average basis, the expansion peaked at 4% in the fourth quarter of 2016. By September last year, the pace of expansion had slowed to 3%.
The economy could still continue to expand in a 2.5% to 3% range for the foreseeable future.
A significant driver of growth over the next two years would be the fiscal impulse as the government delivered a series of handouts to the household sector while pushing ahead with significant investment plans both in terms of housing and infrastructure, Toplis said.
The labor market was becoming increasingly tighter. By the end of last year, the unemployment rate had dropped to 4.5%, the lowest it had been since December 2008.

Short URL : https://goo.gl/8PkCYF
  1. https://goo.gl/htFDtf
  • https://goo.gl/brmZR8
  • https://goo.gl/regQqM
  • https://goo.gl/fHBPqo
  • https://goo.gl/8fNxbh

You can also read ...

Indonesia’s interest rate rise highlights need for urgent defensive action.
Argentina's return to financial chaos might seem remote to...
Pakistan Retains Stable Rating
Moody’s Investors Service said that Pakistan’s (B3 stable)...
Real growth of the oil sector was  14.77% year-on-year in Q1.
Nigeria’s economy expanded for a fourth straight quarter in...
Goldman Says US in Dire Straits
Goldman Sachs’ analysts delivered a weekend note on the United...
Chan Chun Sing (L) and CEO of the Singapore Business Federation Ho Meng Kit,  at The Business Times Leaders Forum on Monday.
With the rise in unilateralism and protectionism, the...
Taiwan Economic Sentiment Weakens
Sentiment toward Taiwan’s economy weakened in May after the...
Investments by state enterprise rose 11.5% from a year earlier.
Thailand produced its fastest economic growth in five years in...
Bruno Le Maire
The stability of the eurozone will be at stake if a populist...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus