New Zealand Insights - June 2019
Key points
Growth still subdued but expected to blip higher
Inflationary pressures remain equally subdued
Labour market remains tight though employment growth has moderated
Room to move on fiscal policy
External accounts in relatively good shape
Currency expected to range-trade in the near-term
The New Zealand economy continues to expand at a subdued pace, at least when compared to recent history. A number of factors have contributed to the slowdown, including less consumer spending and softer business confidence. We still expect a blip higher in growth this year, but not of the magnitude previously expected.
Fiscal policy will be a key source of support for growth, as will higher wages. While dairy prices have softened recently, continued population growth and construction activity are still expected to underpin solid levels of activity. And already easy monetary policy may get easier still.
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Important notes
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This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.