RPT--🇳🇿❗️Cable FX Macro Weekly Note: N.Z. Q2 GDP Growth Rate

**As seen in Risk In The Week report 09/15/23, subscribe at cablefxm.co.uk/reports

The New Zealand economy is set to rebound from a contraction of 0.1% Q/q during the first quarter. Annual growth printed at 1.3% and marked a slowdown from the prior 2.3%. The first quarter economic output came to concrete a recession as it followed a downwardly revised print of -0.7%. The services sector posted a decline of 0.6% in the quarter, the goods-producing industries fell by 0.4% with manufacturing contracting the most at 1.1%. The data reflected the cyclone/flooding effects while the economy is digesting 525bps of RBNZ’s tightening. The central bank decided to leave monetary policy unchanged in August and will not hold another meeting until October 3rd. The desk at ANZ sits in line with the consensus and expects output to expand by 0.4% Q/q, they noted this is a bit less optimistic than the RBNZ’s projection of 0.5%. ANZ warned against putting much attention to a miss or a bit to the headline as second quarter growth is likely to hold unusual impacts from the cyclone and covid while Stats NZ measurement tweaks add uncertainty to the figure. Economists at NAB noted that while an annual growth of 1.3% might come as anti-recessionary, a per-capita measure is showing a contraction in Q2 given high population growth.