New Zealand GDP Grows Less than Expected at 0.4% in Q2

New Zealand economic growth accelerated less than the central bank and economists forecast in the second quarter as manufacturing and residential construction declined, offsetting a recovery in farm output.

Gross domestic product increased 0.4 percent from the first quarter, when it rose 0.2 percent, Statistics New Zealand said in Wellington Thursday. The second-quarter expansion was less than the 0.6 percent forecast by the Reserve Bank, which was also the median forecast of 16 economists surveyed by Bloomberg News. GDP rose 2.4 percent from a year earlier.

Annual growth slowed from a revised 2.7 percent in the first quarter, underscoring the RBNZ’s decision last week to lower the official cash rate for a third time in three months and to signal a further reduction. Falling export prices are discouraging investment and damping demand, while construction activity in Christchurch has reached a peak, the central bank said.

Via Bloomberg Business

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza