InvestNow News – 26th June – AMP Capital – How’s the NZ economy looking? Here are our latest thoughts
19th June 2020 – Bevan Graham – Managing Director and Chief Economist, AMP Capital New Zealand
Key Points
- Unemployment rate heading higher and consumers more cautious
- Inflation rate heading lower in the near term
- RBNZ turns to quantitative easing
- Public debt to head to over 50% of GDP
- Spending needs to be directed at long-term goals
New Zealand’s current recession is unique. It was on us very quickly and is very deep. The June quarter of 2020 will likely see the biggest-ever quarterly decline in New Zealand’s economic activity. That reflects the pace at which everything shut down everywhere.
Furthermore, it was not born of the usual build up in economic imbalances that need to be corrected. That bodes well for the recovery, or at least its initial stages, as economic and social restrictions are lifted and life returns to some semblance of normal.
Read more in our latest New Zealand Insights, which includes a fixed income perspective from Carrick Lucas, Portfolio Manager, and comment on New Zealand equities from Matthew Goodson at Salt Funds Management.