
Analysis by Region - Asia Pacific
Description
We doubt the rebound in New Zealand's economic activity can maintain its recent impressive pace, but the stronger starting point has led us to revise up our forecasts for GDP growth to 1.4% in 2025 from 0.9% previously. The cooling of inflation and the Reserve Bank of New Zealand's (RBNZ) rate cuts should support household spending this year. So, as the 2024 recession enters the rear-view mirror, the annual pace of GDP growth will recover. Indeed, we still expect GDP growth to rise to 2.0% in 2026.
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