NZIER says New Zealand economy remains solid, against uncertain global backdrop - Quarterly Predictions, March 2017

27 February 2017

Many of the key themes for the domestic outlook that we outlined in our previous issue of Quarterly Predictions have continued into 2017. Net migration continues to set new records, boosting demand across many sectors. We continue to expect annual growth in the New Zealand economy to track over 3 percent on average over the next five years.

We expect construction and tourism will remain key drivers of growth, with activity broadening beyond Auckland. A recovery in global dairy prices is also boosting confidence in the rural regions. With businesses feeling more optimistic about demand holding up at high levels, many are planning for expansion through hiring and investment.
Against the solid momentum in the New Zealand economy are heightened geo-political risks from offshore. From the unpredictability of US President Trump’s policy actions to the ongoing political uncertainty across Europe, the shift towards protectionist and anti-establishment sentiment skews risks to the downside.

Quarterly Predictions is an independent take on the New Zealand economic outlook available exclusively to NZIER members.

The media release can be read here.

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