New Zealand’s GDP Growth Analysis
In the second quarter, New Zealand’s Gross Domestic Product (GDP) growth contracted by 0.2% QoQ, a decline from the previous quarter’s revised 0.1%. Despite this setback, it remained above the median market forecast of -0.4%.
Year-over-Year Comparison
On an annualized basis, YoY NZ GDP growth fell by a steeper 0.5%, matching forecasts and reversing the previous period’s 0.5% uptick. The initial print of 0.3% was also revised slightly higher.
Key Drivers of Decline
- Spending declines in retail trade and accommodation, specifically in motor vehicles and food services
- Declines in growth in forestry and logging
- Materials wholesaling also saw a decrease in growth
Economic Indicator: Gross Domestic Product (QoQ)
The Gross Domestic Product (GDP) is released by Statistics New Zealand on a quarterly basis. It measures the total value of all goods and services produced in New Zealand during a given period. The QoQ reading compares economic activity in the reference quarter to the previous quarter. A high reading is seen as bullish for the New Zealand Dollar (NZD), while a low reading is considered bearish.
Last Release Details
- Last release: Wed Sep 18, 2024 22:45
- Actual: -0.2%
- Consensus: -0.4%
- Previous: 0.2%
- Source: Stats NZ Read more
New Zealand Dollar FAQs
Factors Influencing NZD Movement
The New Zealand Dollar (NZD), also known as the Kiwi, is influenced by various factors:
- The health of the New Zealand economy and central bank policy
- Performance of the Chinese economy, as China is New Zealand’s biggest trading partner
- Dairy prices, as the dairy industry is New Zealand’s main export
- Reserve Bank of New Zealand’s inflation rate target and interest rate decisions
Impact of Macroeconomic Data
Macroeconomic data releases in New Zealand play a crucial role in assessing the state of the economy and impacting the valuation of the New Zealand Dollar (NZD). Factors such as economic growth, unemployment rates, and consumer confidence can influence NZD’s value.
Market Sentiment and Risk Factors
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods when market risks are low and investors are optimistic about growth. Conversely, NZD weakens during market turbulence as investors seek safe-haven assets.