Economic growth in New Zealand was slightly better than market assumed, especially thanks to construction boom and rising population thanks to imigration which increased demand for services, for example health-care.
GDP rose 0,7% q/q in last quarter, while market consensus indicated 0,5% q/q growth and in the Q4 2015 was 0,9% q/q. The growth came out better on yearly basis too: 2,8% y/y in the last quarter (consensus: 2,6% y/y, prior: 2,3% y/y).
The growth in better than the RBNZ assumed in its prediction (0,6% q/q) thanks to growing immigration, housing demand and record-low interest rates. On the other hand, Graeme Wheeler said on the last monetary policy conference that rater may need to fall further as inflation persists very low.
Growth of 1,5% from sectors focused on consumer goods production led to better than expected GDP. Construction sector has passed 4,9% growth, the biggest since Q1 2014 and removed negative contribution from industry. Service sector which is resposible for 70% of GDP gained 0,8%, especially thanks to tourism and health-care sector.
The New Zealand dollar is the second strongest after yen currency in G10, gaining 0,64% against the dollar.
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