New Zealand’s GDP growth has shifted down a gear and the peak in the economic cycle is now well behind us. Growth in the second half of 2018 was disappointing, reflecting a number of economic headwinds, including a moderation in global growth and slower population growth. Rising capacity constraints will also continue to have a moderating influence on growth in activity.
But there are tailwinds too, largely on the back of fiscal stimulus and strong growth in labour income. At the same time, monetary policy remains highly stimulatory.
Read more in our latest New Zealand Insights, which includes a fixed income perspective from Carrick Lucas, Fixed Income Analyst, and comment on New Zealand equities from Matthew Goodson at Salt Funds Management.