Statistics New Zealand is scheduled to release Q1-2015 GDP data on 18 June. GDP growth of New Zealand is likely to have remained robust at 3.3% y/y (0.8% q/q), slightly slower than the 3.5% y/y growth in Q4-2014, estimates Standard Chartered. A further drop in dairy prices likely affected GDP growth.
However, this impact is expected to be offset by a less severe drought than expected and continued strength in the construction sector. Construction activity, particularly in Auckland, is likely to be strong and continued its robust contribution to growth. Dairy exports, which comprise c.5% of GDP, likely declined mildly from Q4, while consumption rose 3.5% y/y, adds Standard Chartered.
