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