NZ: Q1 GDP likely to rise by 0.6% – Westpac

Michael Gordon, senior economist at Westpac, expects a 0.6% rise in New Zealand’s GDP for the March quarter, a similar pace to previous quarters.

Key Quotes

“A burst of building activity will account for about half of the growth over the quarter.”

“Our GDP forecast is in line with the market, but is slightly ahead of the Reserve Bank’s forecast. A more robust than expected starting point for the economy would help to keep the RBNZ in watch and wait mode.”

“We expect the annual current account deficit to remain at 3.7% of GDP. Stronger dairy exports will offset weaker tourism earnings and a larger outflow of returns to overseas  investors.”