Economic Growth to Pick up Next Year
November 6, 2012 New Zealand Finance
New Zealand’s economy has slowed down recently, but should pick up again in 2013.
On November 5th the New Zealand Treasury released the latest Monthly Economic Indicators report, warning that economic growth in New Zealand has slowed in the second half of the year.
The softening in growth was not attributed by a singular event, but several smaller factors, including decreasing confidence amongst consumers and businesses, the persistently high New Zealand dollar, continued uncertainty regarding the rebuild of Christchurch, and the ongoing economic turbulence in Europe and amongst New Zealand’s main trading partners.
Over the medium term, growth in the New Zealand economy should recover, as the value of the New Zealand dollar decreases and the stability returns to the country’s trading partners.
Within New Zealand inflationary pressure has remained low, falling below 1.0 percent for the first time in over a decade, but prices will pick up alongside the country’s economy and an increasing demand for supplies cause by the rebuild of Christchurch.
Photo by fras1977