New Zealand GDP grew 0.6% qoq in Q4, up from Q3’s 0.3% qoq and matched expectations. GDP grew 2.8% over the year ended December 2018. While the 0.6% growth missed RBNZ’s forecast of 0.8%, it may not be weak enough to prompt an RBNZ rate cut in this month’s meeting yet.
Looking at the details, growth was driven by services industries which rose 0.9%, with 9 of 11 services industries recording increases. Agriculture, forestry, and fishing industry contracted -0.6%. construction rose 1.8%. Household spending rose 1.3%. Investment spending rose 1.4%.
