New Zealand Economy Expands at Faster Pace as Election Looms
- Gross domestic product meets annual, quarterly forecasts
- Few signals that report will change RBNZ rate expectations
Commercial buildings stand near the Ports of Auckland terminal, rear, along the Waitemata Harbour in Auckland, New Zealand, on Friday, Aug. 22, 2014. New Zealand's dollar fell to the lowest in six months after the nation's trade balance slipped into deficit.
Photographer: Brendon O'Hagan/BloombergNew Zealand’s economy grew at a faster pace in the second quarter, buoyed by increased consumption and manufacturing, a report showed two days before a general election.
Growth is recovering slowly after two sluggish quarters, putting New Zealand on course for a ninth straight year of expansion just two days before voters go to the polls in the Sept. 23 election. While demand is being stoked by record-low interest rates and surging immigration, there are few signs that inflation pressures are building sufficiently for the Reserve Bank to change its forecast that borrowing costs will stay unchanged until 2019.