Dairy drives softer growth outlook, says NZIER - Quarterly Predictions, September 2015
26 August 2015
The downturn in the dairy sector has been the key influence in the softening pace of the New Zealand economy. Business and consumer confidence has deteriorated, with the effects most apparent in dairy-intensive regions.
The effects of reduced farm income will reverberate through the economy as farmers rein in spending to ride out the poor seasons. We expect annual average GDP growth to dip to close to 2% by the end of this year, before rebounding over 2016 as the boost from the lower New Zealand dollar filters through to a broad range of exporting sectors.
Quarterly Predictions an independent take on the New Zealand economic outlook, is available exclusively to NZIER’s members.
The full media release can be read here.Go Back