The GDP in New Zealand advanced 2.3 percent year-on-year in the fourth quarter of 2018, easing from a 2.6 percent expansion in the previous period and below market expectations of 2.5 percent. It was the weakest growth rate since Q4 2013, mainly due to a slowdown in primary activity (0.2 percent vs 1.9 percent in Q3), of which agriculture, forestry & fishing (2.3 percent vs 3.1 percent) and mining (-11.3 percent vs -5.3 percent). Also, the service sector grew 3 percent, lower than a 3.2 percent expansion in the prior quarter, namely wholesale trade (2.4 percent vs 5.2 percent), finance & insurance (1.7 percent vs 2.7 percent), and arts, recreation & other services (1.8 percent vs 3 percent). Meanwhile, industrial activities rose further (1.2 percent vs 0.2 percent), boosted by manufacturing (1.7 percent vs 0.3 percent) and construction (1 percent vs -0.6 percent). On a quarterly basis, GDP expanded 0.6 percent, up from a 0.3 percent growth in the Q3 and matching consensus. GDP Annual Growth Rate in New Zealand averaged 2.62 percent from 1988 until 2018, reaching an all time high of 7.30 percent in the third quarter of 1993 and a record low of -2.30 percent in the first quarter of 2009.
GDP Annual Growth Rate in New Zealand is expected to be 2.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in New Zealand to stand at 2.70 in 12 months time. In the long-term, the New Zealand GDP Annual Growth Rate is projected to trend around 2.80 percent in 2020, according to our econometric models.