NZ: Economy likely expanded by 0.4% in Q2 – ANZ

Analysts at ANZ are expecting that the New Zealand economy likely expanded 0.4% q/q in Q2, with growth driven by a rebound in services.

Key Quotes

“The outlook for the second half of the year and beyond is looking softer and our medium-term forecasts are under review.”

“Absent revisions, growth of 0.4% q/q would see annual growth slow by 0.5%pts to 2.0% y/y – the softest pace since Q4 2013.”

“The seasonally adjusted current account deficit is expected to widen $0.1bn in the quarter, driven by a widening income deficit. The annual current account deficit is expected to narrow 0.2%pts to 3.4% of GDP.”