New Zealand

On track for a soft landing

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The economy grew very rapidly in the first half of the year, adding to an already positive output gap and inflation pressures. However, the pace of activity is now starting to slow, as higher interest rates dampen domestic demand and the effects of exchange rate appreciation continue to spread through the economy.
Labour shortages persist and real wage growth may accelerate, although capacity constraints will be eased through high rates of investment.The economy is on track for a soft landing, and successive moves taken to tighten monetary policy during 2004 should prove to be sufficient. Additional fiscal stimulus at this point in the cycle would be unhelpful and would anyway need to be offset by higher interest rates in order to bring the economy back onto a sustainable growth path.
Population (000s), 20034 009
Area (000 sq km)269
GDP (Billion USD), 200379.0
Life expectancy at birth (Women, Men), 2001 80.9, 76.0
Total labour force (000s), 20032 024
Government typeParliamentary Democracy
Indicators% change unless otherwise indicated
GDP growth4.82.12.6
Consumer price index2.33.02.8
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)
Current account balance (% GDP)-5.1-5.3-5.0
Source: OECD© OECD Observer No 245, November 2004

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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