The New Zealand economy advanced 0.5 percent on quarter in the three months to June 2019, slowing from a 0.6 percent expansion in the previous period but beating market expectations of 0.4 percent. The services sector, which represents about two-thirds of the economy, was the main contributor to GDP, increasing 0.7 percent (vs 0.3 percent in Q1), of which retail trade & accommodation (0.7 percent vs -0.6 percent); transport, postal & warehousing (1.8 percent vs 1.2 percent); and financial & insurance services (0.8 percent vs 0.7 percent). Also, primary industries rose 0.7 percent, rebounding from a 0.5 percent contraction, driven by agriculture, forestry & fishing (1.6 percent vs -2 percent). Meanwhile, the secondary sector shrank 0.2 percent (vs 1.9 percent in Q1), due to manufacturing (-0.8 percent vs 1.2 percent) and construction (-0.8 percent vs 1.9 percent). On a yearly basis, the GDP advanced 2.1 percent, easing from a 2.5 percent expansion in Q1. GDP Growth Rate in New Zealand averaged 0.64 percent from 1987 until 2019, reaching an all time high of 2.80 percent in the third quarter of 1999 and a record low of -2.40 percent in the first quarter of 1991.
GDP Growth Rate in New Zealand is expected to be 0.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in New Zealand to stand at 0.80 in 12 months time. In the long-term, the New Zealand GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.