NZ Treasury: Annual growth in 2015 may fall to 2.0%

FXStreet (Bali) – NZ Treasury monthly economic indicators are out, noting that GDP growth in the June quarter is expected to be around 0.6%, lower than the BEFU forecast, while annual growth in 2015 may fall to 2.0% as domestic demand softens.

Headlines

Weakness in retail spending as employment growth declined points to softer private consumption growth in the June quarter than previously expected.

However, a buoyant housing market, elevated net migration gains and exchange rate depreciation are expected to continue to support growth.

Dairy prices remained low in August, pointing to further falls in the terms of trade.

Volatility in financial markets reflected concerns over China’s growth slowdown.

NZ Treasury monthly economic indicators are out, noting that GDP growth in the June quarter is expected to be around 0.6%, lower than the BEFU forecast, while annual growth in 2015 may fall to 2.0% as domestic demand softens.

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