15 Sep 2015
NZ: Economy likely to expand 0.8% in Q2 and 2.7% (YoY) – BNZ
FXStreet (Delhi) – Research Team at BNZ, suggest that the Thursday’s June quarter GDP report will be the focal point for New Zealand this week. We anticipate a 0.8% gain in Q2 GDP (with risks tilted to 0.7%) and an expansion of 2.7% on a yearly basis for the Kiwi economy, the team further suggests.
Key Quotes
“Market expectations are for a quarterly expansion of 0.5/0.6%. The RBNZ, in its September MPS, was looking for +0.6%. This is founded on a bounce-back in rural production following
its drought-impacted performance of Q1 (which, in turn, limited that quarter’s GDP rise to 0.2%). This should reverberate into a good lift in manufacturing for Q2, via food processing.”
“Also, we expect a further decent increment from construction and ongoing robustness in service sector activity growth. Our expenditure-GDP growth estimate for Q2 is 0.6%.”
“Our expectation on (production-based) GDP would deliver annual growth of 2.7%. However, this outcome is potentially sensitive to the historical revisions that Statistics NZ is due to implement with this week’s national accounts (and Balance of Payments) release.”
Key Quotes
“Market expectations are for a quarterly expansion of 0.5/0.6%. The RBNZ, in its September MPS, was looking for +0.6%. This is founded on a bounce-back in rural production following
its drought-impacted performance of Q1 (which, in turn, limited that quarter’s GDP rise to 0.2%). This should reverberate into a good lift in manufacturing for Q2, via food processing.”
“Also, we expect a further decent increment from construction and ongoing robustness in service sector activity growth. Our expenditure-GDP growth estimate for Q2 is 0.6%.”
“Our expectation on (production-based) GDP would deliver annual growth of 2.7%. However, this outcome is potentially sensitive to the historical revisions that Statistics NZ is due to implement with this week’s national accounts (and Balance of Payments) release.”