Westpac Projects 0.9% GDP Growth Ahead of Q3 Economic Release

Westpac is forecasting a significant increase in New Zealand’s Gross Domestic Product (GDP) for the third quarter of 2023, predicting a growth rate of 0.9%. This announcement comes ahead of the official release of economic figures by Statistics New Zealand (Stats NZ) for the three months ending September, which are expected to show a growth of 0.4%, according to the Reserve Bank.

Kelly Eckhold, Chief Economist at Westpac, explained that the anticipated growth would reflect a rebound in economic activity across multiple sectors. He noted in an interview with Andrew Dickens that the current growth would help recover losses from the previous quarter, which experienced a decline in economic activity.

Eckhold emphasized that while the expected growth is encouraging, it is essential for New Zealand to see two or three consecutive quarters of positive growth before confidence in a sustained upward trend can be established. He pointed out that the broader economic implications would depend on the consistency of this growth moving forward.

As the data is released by Stats NZ, all eyes will be on how the numbers align with Westpac’s optimistic predictions. The results will play a crucial role in shaping economic policy decisions and the outlook for New Zealand’s economy in the coming months.

The release of the GDP figures is scheduled for later today, and it will be closely analyzed by economists, policymakers, and investors alike. The outcome will provide insights into the current economic climate and help gauge the effectiveness of recent fiscal and monetary measures implemented to stimulate growth.

Overall, the anticipation of a strong GDP figure marks a pivotal moment for New Zealand’s economic trajectory. With various sectors expected to show signs of recovery, the focus now shifts toward ensuring this growth is not only robust but also sustainable in the long term.