The Reserve Bank of New Zealand has cut the official cash rate by 1.75% to 3.75% over the past six months.
New Zealand’s gross domestic product (GDP) rose 0.7% in the Q4 2024 quarter, following a 1.1% decrease in the Q3 2024 quarter, according to figures released by Stats NZ on Tuesday.
The result was stronger than the Reserve Bank and economists had expected. The Reserve Bank and major bank ASB forecasted the economy to grow by only 0.3% over the quarter.
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The outcome additionally ended the financial system’s recession, which had been the worst (exterior of the pandemic) since 1991.
Stats NZ famous that 11 of the 16 industries elevated in This autumn 2024.
The most important rises have been from rental, hiring, and actual property companies; retail commerce and lodging; and healthcare and social help.
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The most important falls have been in building, data media and telecommunications.
The next chart from Justin Fabo from Antipodean Macro reveals the quarterly change in New Zealand’s GDP:
Right here is how New Zealand’s GDP progress seems to be as a time collection and in opposition to the Reserve Financial institution’s forecast:
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New Zealand’s GDP per capita additionally rose by 0.4% in This autumn 2024, the primary enhance since Q3 2022. Nevertheless, it stays properly beneath the height.
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Based on Justin Fabo, exercise indicators recommend that the New Zealand financial system will proceed to enhance within the upcoming quarters, offered that unfavourable world developments stay secure.
Earlier than these outcomes, main financial institution ASB forecasted that the Reserve Financial institution would reduce the official money fee (OCR) by 0.25% on the April and Might conferences, reducing the OCR to three.25%.
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Such financial easing would additional stimulate New Zealand’s financial restoration.
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