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.
“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.”