WELLINGTON (Nz): New Zealand’s economy exceeded expectations to cultivate 1.1% inside September quarter to the back of booming construction and record tourist numbers, official data showed Thursday.
The strong performance from July to September topped market forecasts of 0.9% and took annual economic growth to three.0%.
Statistics New Zealand said 13 from the 16 industries accustomed to gauge gdp were positive, pointing to some broad-based expansion in economic activity.
The standout sectors were construction, up 2.1%, and transport, which surged 3.7% on the quarter.
“It really is clear the economy is profiting from a combination of high net migration, strong tourism flows and low interest rates,” Capital Economics analyst Paul Dales said.
The strong economic activity was planning to spur New Zealand’s stubbornly low inflation rate, easing pressure to the central bank to help cut home interest rates from your record low 1.75%, he added.
New Zealand recorded an archive 3.45 million international tourists in 12 months to November 30, while net migration in the same period was an all-time high of 70,400.
Finance Minister Steven Joyce stated it was a welcome boost to the economy because the rural sector, once New Zealand\’s biggest export, struggled.
“It’s challenging overstate value of key service sector exports like tourism and education in New Zealand’s economic success lately,” he was quoted saying.
“They already have taken up a lot of the shortfall because dairy sector underwent its downturn.”
Joyce said Nz had one of the greatest growth rates in the developed world, with official forecasts predicting continued annual development of about 3.0% until 2021.