New Zealand Q2 GDP up 1.7 per cent

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New Zealand has avoided a recession and beaten economic forecasts by recording 1.7 per cent growth in gross domestic product for the quarter to June.

The positive result in Thursday's release by Stats NZ follows a 0.2 per cent contraction in the first quarter of 2022, which gave rise to the possibility of a technical recession.

Instead, the Kiwi economy cleared the range of predictions from local banks, which tipped a rise of between 0.4 and 1.6 per cent.

"The reopening of borders, easing of both domestic and international travel restrictions, and fewer domestic restrictions ... supported growth in industries that had been most affected by the COVID-19 response measures," Stats NZ spokeswoman Ruvani Ratnayake said.

"Households and international visitors spent more on transport, accommodation, eating out, and sports and recreational activities."

The closest prediction came from the Reserve Bank (RBNZ), which tipped growth of 1.8 per cent in its latest monetary policy statement, issued last month.

Concerningly, the RBNZ now forecasts three years of anaemic growth, with its forward projections through to 2025 falling below 0.7 per cent for each quarter.

Finance Minister Grant Robertson said the Q2 result "underlines the resilience of the economy".

"Our strong growth in the June quarter comes at a time the IMF (International Monetary Fund) estimated that global output shrank," he said.

Earlier on Thursday, Mr Robertson struck a bullish tone in a speech to a business audience in Auckland.

"Despite these globally turbulent times, with war, supply-chain disruption, energy shocks and inflation spikes, New Zealand has cause for optimism," he said.

Mr Robertson pointed to growing exports and said tourism figures would continue to improve.

"In a crowded, turbulent world we have something to offer ... because from chaos comes opportunity," he said.

While Mr Robertson lauded the "highest median earnings growth" on record, Opposition finance spokeswoman Nicola Willis pointed out wages were growing well short of inflation, which lies at 7.3 per cent.

"Most Kiwis are going backwards as their wages struggle to keep up with rising prices," she said.

New Zealand's Q2 result was stronger than many developed economies, topping Australia (0.9 per cent), Canada (0.8), the Eurozone (0.7), and the 0.1 per cent declines in the UK and US.

The services sector was the biggest contributor to growth, increasing 2.7 per cent quarter-on-quarter.

The result is likely to mean the RBNZ continues its path of raising the official cash rate (OCR).

ASB senior economist Mark Smith said the growth figures had led the bank to raise its expectations for the OCR's peak from four per cent - as is widely forecast - to 4.25 per cent in February 2023.

The OCR currently sits at 3.5 per cent, growing from a rock-bottom 0.25 per cent this time last year, with industry expecting it will be four per cent by year's end.