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In a Bloomberg interview earlier this Tuesday, New Zealand Institute of Economic Research’s (NZIER) Chief Economist said that he doesn’t expect the NZ economic contraction to be as severe.

The activity gauge indicates the annual GDP fall will be 2% in Q2, he added.  

His comments come after the body’s Quarterly Survey of Business Opinion (QSBO) showed that the NZ Business Confidence improved to -63 in vs. -70 seen in Q1.

The survey was conducted over the main period of the COVID-19 lockdown.

Market reaction

NZD/USD is off the highs, consolidating minor gains around 0.6560 amid mixed market sentiment, as S&P 500 futures drop despite the advance in the Asian stocks.