November 17, 2021

NZ economy surges as housing, retail drive post-COVID recovery

A sailing boat can be seen in front of the central business district (CBD) of Wellington in New Zealand, July 2, 2017. REUTERS/David Gray

  • NZ Q1 GDP rose 1.6%, beats all estimates
  • Annual GDP up 2.4%, well ahead of forecasts
  • Economists pencil in earlier rate hikes

WELLINGTON, June 17 (Reuters) – New Zealand’s economic growth swept past forecasts in the first quarter on the back of a housing boom and strong retail spending, avoiding a second recession and bringing forward expectations for tighter monetary policy.

Gross domestic product (GDP) rose 1.6% in the three months through to March, Statistics New Zealand said on Thursday, well ahead of a Reuters poll forecast of 0.5% growth and the Reserve Bank of New Zealand’s (RBNZ) estimate of a 0.6% fall.

New Zealand’s success in virtually eliminating the coronavirus in the country allowed it to reopen its domestic economy must before other…

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