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New Zealand GDP forecasts revised lower

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NZIER is the new Zealand Institute of Economic Research.

Their latest Consensus Forecasts (these are an average of New Zealand economic forecasts compiled from a survey, not forecasts from NZIER itself).

In brief:

  • The latest NZIER Consensus Forecasts show a downward revision to economic growth for the
    year to March 2023, followed by a slowing in growth over the subsequent years. Annual average
    GDP growth is forecast to slow to 0.6 percent in the year to March 2024 before picking up to 1.4
    percent in 2025.

And:

  • recent developments point to signs of a softening in demand and an easing in capacity
    pressures
  • Forecasts of household spending have been revised lower from 2024
  • With increasingly more
    households rolling onto much higher mortgage rates over the coming year, further weakening
    in household consumption is expected

The report also includes remarks on the New Zealand dollar TWI (trade-weighted index).

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