KiwiBank in New Zealand on yesterday's GDP from New Zealand and why the strong growth doesn't;t matter for what's ahead:
- Suggestions our strong GDP figures could mean a bigger Official Cash Rate hike next February.
New Zealand's GDP has grown two percent in the three months to September which is a higher growth rate than Australia, the US, the UK and the EU.
Kiwibank Chief Economist Jarrod Kerr says it doesn't change our gloomy economic outlook, with the Treasury and Reserve Bank forecasting a recession next year.
"It simply means we've got a larger economy than we thought, which is fantastic, but the outlook hasn't changed. The Reserve Bank is deliberately trying to engineer a recession in order to get inflation back down."
Thats a snippet summary of an audio item you can find here if you want more.
Earlier:
ANZ forecasts New Zealand recession from 2Q 2023 - matching the NZ Treasury forecast