New Zealand's Economic Outlook Dims as Growth Forecasts Are Revised Downward

Deep News06-15

An economic research institute in New Zealand has released a quarterly composite forecast report on its official website, compiled from local economists.

The economists now project an average annual growth rate of 0.6% for the gross domestic product in the fiscal years 2025 to 2026. This represents a downward revision from a forecast of 0.8% made in a March survey.

For the fiscal years 2026 to 2027, the economists anticipate an average annual GDP growth rate of 1.6%, a significant reduction from the 3% forecast in the previous March survey.

Looking at the fiscal year ending March 2027, economists believe that consumption, residential investment, and export performance will be weaker than anticipated three months ago.

The growth forecast for private consumption has been lowered to 0.8% from a previous expectation of 1.8%. The forecast for residential investment growth has been cut to 5.1% from 9%. Export growth expectations have been reduced to 2.4% from 3.5%. The forecast for employment growth has been revised down to 1.3% from 2.3%.

For the fiscal year ending March 2027, the consumer price index inflation rate is now expected to be 3.3%, up from a prior forecast of 2.3%.

This composite forecast aggregates the views of eight institutions, including the New Zealand Treasury and the Reserve Bank of New Zealand. All forecast data is based on a fiscal year ending March 31st.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment