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- New Zealand: GDP now seen contracting at 5.0% this year - UOB
New Zealand: GDP now seen contracting at 5.0% this year - UOB
FXStreet reports that economist at UOB Group Lee Sue Ann reviewed the latest GDP figures in New Zealand for the second quarter.
“New Zealand’s GDP fell 12.2% q/q in 2Q20, following a revised 1.4% q/q fall in 1Q20 (-1.6% q/q previously). Primary industries were the most resilient in the quarter, down 8.7% q/q. Goodsproducing industries were the most severely impacted, falling 16.3% q/q, whilst services declined 10.9% q/q… Compared to the same period one year ago, New Zealand’s GDP fell by 12.4% y/y, the first y/y decline since the March 2010 quarter.”
“The economic situation is likely to be a key issue in next month's election, which was delayed after an unexpected spike in COVID-19 infection cases in August.”
“The slightly stronger 2Q20 print relative to our expectations of -16.6% y/y has led us to revise our 3Q20 and 4Q20 prints of -6.1% y/y and -3.5% y/y, to -5.9% y/y and -4.2% y/y, respectively. This will see our full year 2020 GDP contraction less severe at -5.0%, compared to our previous forecast of -6.6%.”
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