The New Zealand economy advanced 0.6 percent on quarter in the fourth quarter of 2018, following a 0.3 percent expansion in the previous period and matching market forecasts. The services sector grew 0.9 percent, faster than a 0.5 percent expansion in the third quarter, mainly driven by retail trade & accommodation (2.5 percent vs 0.6 percent in Q3), transport (3.2 percent vs 0.1 percent), real estate (1.1 percent vs 0.2 percent), public administration (1.8 percent vs 1.5 percent) and information & communication (1.6 percent vs -0.3 percent). Also, industrial activities expanded 0.2 percent (vs -0.9 percent in Q3), boosted by construction (1.8 percent vs -0.6 percent). In contrast, the primary sector shrank 0.8 percent (vs 2.3 percent in Q3), of which agriculture (-0.6 percent vs 0.8 percent) and mining (-1.7 percent vs 12.7 percent). Year-on-year, the economy grew 2.3 percent, slowing from 2.6 percent in the prior quarter, recording the weakest growth rate since Q4 2013. GDP Growth Rate in New Zealand averaged 0.64 percent from 1987 until 2018, 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 0.60 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 1.00 percent in 2020, according to our econometric models.