New Zealand economy likely to depict steady and reasonably positive picture heading into 2018, says ANZ Research

The New Zealand economy is expected to depict a steady and reasonably positive picture heading into 2018, although it is arguably ‘as good as it is going to get’, according to a recent report by ANZ Research. In particular, the impact of a turn in the global liquidity cycle and the impact on asset prices at a time when many households appear more vulnerable.

Some clear headwinds are being navigated right now that have increased the odds of a growth wobble. However, we are not ready to call time on the cycle just yet. There are still enough positive forces that should see growth returning to broadly around trend over the next couple of years (but probably not much more). It is admittedly a more nuanced economic story, but one that still has a positive hue to it overall.

"However, as financial market volatility picks up on a more pronounced turn in the global liquidity cycle, we expect this to put the NZD back on the defensive again," the report said.

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