After slightly lower growth in the second quarter of the 2016-17 financial year, the New Zealand economy appears back on track for solid growth in the 2017 March quarter, according to the BusinessNZ Planning Forecast.
BusinessNZ Chief Executive Kirk Hope says mediocre weather during spring 2016 and summer 2016-17 had meant lower dairy production, and the November 2016 earthquakes also contributed to mixed results for the economy.
But he said domestic conditions were improving.
“Tourism is going from strength to strength, and strong migration is contributing to our domestic building boom.
“The international economy is showing some signs of improvement, although the long-term impact of Brexit and the ‘Trump effect’ will bring some uncertainty.
“Overall, the New Zealand economy is on track for sustained solid growth.”
The Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, business, and consumer confidence.
The BusinessNZ Economic Conditions Index sits at 13 for the March 2017 quarter, up 1 on the previous quarter, and up 12 on the March 2016 quarter.