NZIER New Zealand March Economic Projections
|The latest NZIER Consensus Forecasts (CF) show a downward revision to growth forecasts later this year the report shows.
However, it states that ''this partly reflects a higher starting point, as the recovery in demand after lockdown restrictions were relaxed turned out to be stronger than expected.''
Key notes
''The downward revision to the medium-term growth outlook largely reflects expectations that the rebound in household spending will not be as sharp as initially expected. There has also been a downward revision to the longer-term outlook for residential investment, but this follows expectations of strong growth over the coming year.''
''Dwelling consent issuance and the NZIER Quarterly Survey of Business Opinion’s architects’ measure of activity in their own office indicates a robust pipeline of residential construction over the coming year.''
''Low interest rates have contributed to the increase in housing demand, with the surge in house prices encouraging new housing supply to come on board.''
''Expectations for other investment over the coming years remain robust. Business confidence is recovering, with businesses feeling more positive about hiring and investment. Employment demand is picking up and with signs of a re-emergence in labour shortages the unemployment rate has been revised lower.''
''This is expected to flow through to stronger wage growth over the coming years. The increase in inflation pressures is underpinning higher interest rate expectations, with Consensus Forecasts now suggesting expectations of an increase in the OCR from 2022.''
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.