Treasury predicts anaemic GDP growth

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

The economy probably grew in the last two quarters but only just, according to the Treasury’s Monthly Economic Indicators report for June.

Treasury predicted March quarter GDP statistics, to be released this Thursday, would show a modest 0.3% increase, with negative impacts from the February 22 earthquake “largely confined to Canterbury.”

June quarter GDP growth would be more impressive but still nothing to write home about, the report said.

“We expect activity will rise further in the June quarter, but within the bounds of our forecast for GDP to grow less than 1% over the first two quarters of the year.

“Further impetus will come in the September quarter from the Rugby World Cup and from easing uncertainty around the Canterbury reconstruction programme.”

The report noted that although retail trade had started the year slowly, residential construction had fallen.

However, manufacturing and wholesaling firms began the year on an upward note, with wholesale trade sales rising 2.8% in the March quarter, the largest rise in four years.

Also, the National Bank Business Outlook (NBBO) survey results in May and June showed increasing levels of business confidence.

“Current levels of business optimism are consistent with accelerating growth over the year ahead,” Treasury said.

“Whether that is realised or not will be influenced by way the global recovery story develops and how events in Greece unfold.”


This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

4 Comments & Questions

Commenter icon key: Subscriber Verified

Fitch is predicting slower growth for most of economies. http://www.businessnews24hr.com/details.aspx?ID=182 So no surprise here.

Reply
Share
  • 0
  • 0

Once again the banker's economists and RBNZ were over optimistic.
Why don't economists stick to commentary instead of forecasting.

Reply
Share
  • 0
  • 0

we will get little growth as long as the reserve bank maintains it's low interest policy
we desperately need to build savings and investment capital.we will only do this if interest rates are set at a level that will attract savings
a new reserve bank policy is overdue
liberte

Reply
Share
  • 0
  • 0

It's rale an forthcoming stop. The penning treat old and the way of capability is rale inflatable. It's truly a official use. Thanks alot for the increase.
<a href="http://www.daycaregrants.org">DaycareGrants.org</a>

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7552 -0.0013 -0.17%
AUD 0.9678 0.0004 0.04%
EUR 0.6746 -0.0006 -0.09%
GBP 0.4897 0.0000 0.00%
HKD 5.8641 -0.0002 -0.00%
JPY 90.3380 -0.0320 -0.04%

Commods

Commodity Price Change Time
Gold Index 1212.6 3.670 2015-02-27T00:
Oil Brent 62.6 1.590 2015-02-27T00:
Oil Nymex 49.8 1.310 2015-02-27T00:
Silver Index 16.5 -0.022 2015-02-27T00:

Indices

Symbol Open High Last %
NZX 50 5861.7 5878.5 5847.5 0.53%
NASDAQ 4985.0 4989.2 4987.9 -0.49%
DAX 11337.1 11401.7 11327.2 0.66%
DJI 18213.3 18213.3 18214.4 -0.45%
FTSE 6949.7 6967.2 6949.7 -0.04%
HKSE 24902.6 25102.0 24902.1 -0.32%
NI225 18844.3 18865.4 18785.8 0.06%