NZ: Q3 GDP likely to rise by 0.5% – Westpac

Michael Gordon, senior economist at Westpac, expects a 0.5% rise in New Zealand’s GDP for the September quarter, similar to the pace seen in the previous quarter.

Key Quotes

“Conditions were mixed over the quarter. Retailing, manufacturing and business services saw solid gains, while forestry, travel and personal services were soft.”

“Annual revisions will lift the level of nominal GDP growth in recent years, though the impact on real activity is unclear.”

“GDP growth has slowed over the course of this year, but there are tentative signs that we have reached the low point.”

“Our GDP forecast is likely to be within the range of other market forecasts, but is stronger than the Reserve Bank’s estimate of 0.3%.”

“We expect the current account deficit to hold steady at 3.4% of GDP, with weaker exports offset by a smaller investment income deficit.”