The New Zealand economy continues to perform well. This is despite slowing population growth and the seemingly entrenched pessimism emanating from the business community. Annual GDP growth is still solid by mature developed economy standards but has clearly shifted down a level. The theme of capacity constrained growth continues to play out, as spare capacity is absorbed and a number of key sectors, such as construction and tourism, are at capacity. We continue to expect fiscal policy to be a key support for GDP growth over the course of 2019, though the forecast growth outlook remains largely unchanged.

Read more in our latest New Zealand Insights, which includes a fixed income perspective from Warren Potter, Senior Portfolio Manager, and comment on New Zealand equities from Matthew Goodson at Salt Funds Management.