New Zealand economy back again to pre-pandemic levels
17 June, 2021
New Zealand's economy posted better-than-expected growth of 1 1.6 percent in the first quarter of 2021, official data showed Thursday, with analysts saying activity was back at pre-coronavirus levels.
The expansion in January-March this season exceeded forecasts of a 0.5 percent rise and reversed a 1.0 percent contraction in the ultimate quarter of 2020.
Statistics New Zealand said the figures meant the economy grew 2.4 percent in the 12 months to the finish of March, driven by shelling out for hospitality and big-ticket retail goods such as for example televisions and cars.
New Zealand has largely contained the coronavirus, with no recent community transmission and just 26 deaths in a population of five million, allowing minimal day-to-day restrictions.
While there was a short recession in mid-2020, Kiwibank chief economist Jarrod Kerr said surging domestic activity had a lot more than made up for declines recorded in sectors such as for example tourism and international education.
Kerr said a booming housing marketplace was fueling construction, which rose 6.6 percent in the quarter.
"The economy has confidently returned to pre-COVID levels," he said. "We've a lot more than dodged a double dip recession. We've outrun it. We're spending and building our way out of the hole that COVID created."
Kerr said the strong figures meant the central bank, which includes held its base rate at a record low of 0.25 percent since March 2020, may likely look at easing monetary policy by May next year.
Source: japantoday.com
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