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New Zealand’s GDP result was a little below Westpac Institutional Bank forecast, but close to market expectations. Today’s result also confirms Westpac’s view that the economy was picking late last year.

Key quotes

“New Zealand’s GDP rose by 0.5% in the December quarter. That was just below our forecast for a 0.6% rise, but in line with the average analyst forecast.”

“For the year to December 2019, the New Zealand economy grew by 2.3%. That compares to growth of 3.2% over calendar 2018.”

“Today’s result predates the outbreak of Covid-19. It confirms our view that the economy was picking late last year. Nevertheless, we still expect a significant deterioration in economic activity over the coming year.”

“There was no reaction to today’s result.”