NZ treasury report: Stronger GDP seen growth in H2 2016 than forecast

New Zealand’s treasury published its latest monthly economic indicators report for the month of Oct last minutes, reflecting upbeat growth and inflation assessment in H2 2016.

Key Quotes:

“A solid lift in business activity and business confidence continues to point to stronger GDP growth in the second half of 2016 than forecast in the Budget Update.”

“Demand in the economy is driven by elevated net migration inflows, housing demand and tourism spending. The export price recovery is expected to continue.”

“Annual inflation remained weak in the September quarter, owing to low petrol prices and a reduction in vehicle levies. However, inflation is expected to rise from here.”

“International data were mixed but generally positive and expectations of US monetary tightening increased.”