New Zealand economists expect 2023/24 GDP at 0.4%, from 0.6% previously – NZIER survey

<p>The latest New Zealand Institute of Economic Research (NZIER) <a href="https://www.nzier.org.nz/publications/nzier-consensus-forecasts-point-to-subdued-growth-for-the-two-years-ahead" target="_blank" rel="nofollow">Consensus Forecasts</a> in brief:</p><ul><li>Annual average GDP growth is forecast to slow to 0.4 percent in the year to March 2024 before recovering to just 1.1 percent in 2025.</li><li> Higher interest rates are starting to dampen demand as the impact of previous increases in the Reserve Bank’s Official Cash rate (OCR) is transmitting through to the broader economy. </li><li>Added to this is the downside risk from weaker demand for New Zealand exports, primarily due to the weaker growth outlook in China.</li><li> Offsetting these are the upside risks from the strong recovery in net migration, which will likely support demand over the coming years.</li><li>The inflation outlook for the year ending March 2024 has been revised higher. Annual CPI inflation is forecast to ease to 4.3 percent before decreasing to 2.4 percent in 2025.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.