NZ Q4 GDP: Subdued growth persists - Westpac

Michael Gordon, Senior Economist at Westpac, notes that New Zealand’s GDP rose by 0.6% in the December quarter, in line with Westpac’s forecast.

Key Quotes

“The details were a mixed bag, with declines in agriculture and manufacturing, against solid growth in domestically-focused services.”

“The pace of economic growth has slowed over the last year. We expect it to remain subdued in the near term, with poor dairying conditions, growth constraints in the building industry, and the uncertain impact of the new Government’s policies.”

“Slowing GDP growth reinforces our view that OCR hikes are further away than the market is anticipating.”