NZ: Growth to rebound in Q2 – Westpac

Analysts at Westpac estimate that New Zealand’s GDP rose by 0.8% in the June quarter, to be up 2.8% over the past year.

Key Quotes

“We expect next week’s GDP figures to show a rebound in growth over the June quarter to 0.8%. That follows subdued growth in both the December and March quarters that was weighed down by temporary factors. Our forecast is lower than the 0.9% rise that the Reserve Bank expected in its most recent Monetary Policy Statement.”

“In part, the expected firmness in the June quarter reflects a rebound from earlier temporary weakness in the agriculture and transport sectors. We also saw a strong gain in retail spending over the quarter.”

“On the downside, the construction sector has encountered roadblocks, and there has been softness in non-food manufacturing.”

“The annual current account deficit is expected to remain around 3.1%. On a seasonally adjusted basis, we expect improvements in both the quarterly goods and services balances, underpinned by increases in dairy and tourism exports.”