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21 Dec 2015
NZ losing momentum - Westpac
FXStreet (Guatemala) - Analyst at Westpac explained that in NZ, the latest GDP figures showed that the economy grew by 0.9% in the September quarter, taking growth for the year to 2.3%.
Key Quotes:
"That’s not a bad outcome, and similar to the rates of growth that we’re seeing in many of our trading partner economies. It’s also notable that much of the growth we’ve seen has been a result of strengthening domestic demand, with services accounting for most of the growth in the September quarter.
But while the past year certainly wasn’t a bad one, if we look a little closer, some of the gloss starts to come off the headline numbers. Over the past year, we’ve actually seen quite a sharp deceleration in growth - down from a rate of 3.7% in 2014. And the growth that we have seen comes on top of strong population growth as a result of record high net immigration. In per-capita terms, annual GDP growth over the past year was just 0.4% (down from rates of above 2% though 2014).
There are certainly some bright spots in the economy. The construction sector is humming along with work continuing apace in Canterbury and strong demand in Auckland. In addition, we’re seeing firm growth in household spending. Nevertheless, we’re left with a picture of an economy that – while still healthy – has clearly lost momentum."
Key Quotes:
"That’s not a bad outcome, and similar to the rates of growth that we’re seeing in many of our trading partner economies. It’s also notable that much of the growth we’ve seen has been a result of strengthening domestic demand, with services accounting for most of the growth in the September quarter.
But while the past year certainly wasn’t a bad one, if we look a little closer, some of the gloss starts to come off the headline numbers. Over the past year, we’ve actually seen quite a sharp deceleration in growth - down from a rate of 3.7% in 2014. And the growth that we have seen comes on top of strong population growth as a result of record high net immigration. In per-capita terms, annual GDP growth over the past year was just 0.4% (down from rates of above 2% though 2014).
There are certainly some bright spots in the economy. The construction sector is humming along with work continuing apace in Canterbury and strong demand in Auckland. In addition, we’re seeing firm growth in household spending. Nevertheless, we’re left with a picture of an economy that – while still healthy – has clearly lost momentum."