Stronger than expected economic pulse, despite US-Iran conflict
New Zealand's economy has shown resilience, maintaining a positive growth outlook despite global fuel price shocks and geopolitical tensions involving the US and Iran. Economists note that while growth is subdued, the primary and goods-producing sectors are providing necessary support.
Why it matters
The report illustrates how small, trade-dependent economies navigate global volatility and supply chain disruptions.
New Zealand is expected to have dodged significant economic damage from the US-Iran conflict caused by the fuel-price shock and disruption that dominated the quarter.
Initial fears were that the major spikes in petrol and diesel prices would all but wipe out the solid start to the year, sending consumers and businesses scurrying to cut costs and severely dampening activity.
BNZ senior economist Doug Steel said there has been a stronger than expected economic pulse.
"GDP still looks relatively subdued in the second quarter, but it now might come with a positive hue rather than a negative one, driven by the primary sector, goods producing, construction, and wholesale trade sectors."
The consensus among major forecasters is for quarterly growth of 0.1-0.2 percent for the three months ended June, taking the annual rate to 2.2 percent.
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