In recent years, the New Zealand economy has expanded at a robust rate, while the jobless rate has dropped to 5.2 percent. But despite this, there is no upward pressure seen on consumer prices or wages. Economic activity of New Zealand is likely to continue to stay strong for certain period of time. The economy is expected to expand 3.2 percent in 2016 and 2.9 percent in 2017, said Westpac in a research note.
Population growth, robust construction activity and supportive monetary policy are underpinning this current expansion. All these factors are assisting in countering lingering challenges on the external front of the economy.
However, there are doubts about New Zealand’s households’ financial health. Moreover, a deceleration in growth continues to be on the table through the latter part of the decade, noted Westpac. Construction activity continues to be the main factor supporting the New Zealand’s GDP growth.
