Economics & Markets

New Zealand Insights - June 2020

By Bevan Graham
Managing Director and Chief Economist, AMP Capital New Zealand New Zealand

Key points

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Unemployment rate heading higher and consumers more cautious

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Inflation rate heading lower in the near term

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RBNZ turns to quantitative easing

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Public debt to head to over 50% of GDP

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Spending needs to be directed at long-term goals

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Need to prepare for the next crisis

New Zealand’s current recession is unique. It was on us very quickly and it is very deep. The June quarter of 2020 will likely see the biggest-ever quarterly decline in New Zealand’s economic activity. That reflects the pace at which everything shut down everywhere.

Furthermore, it was not born of the usual build up in economic imbalances that need to be corrected. That bodes well for the recovery, or at least its initial stages, as economic and social restrictions are lifted and life returns to some semblance of normal.
 

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Bevan Graham, NZ Managing Director & Chief Economist
  • Economics & Markets
  • New Zealand Insights
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Important notes

This blog post 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.

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