The GDP in New Zealand expanded 2.8 percent year-on-year in the second quarter of 2018, slightly up from a downwardly revised 2.6 percent growth in the previous period and above market expectations of 2.5 percent. The uptick against Q1 was mainly explained by wholesale trade (+4.9 percent vs +4.1 percent in Q1), financial & insurance services (+2.8 percent vs +1.4 percent), construction (+3.6 percent vs +2.3 percent in Q1) and utilities (+2.8 percent vs -1.2 percent). Agriculture (+1.6 percent vs -1.9 percent), information media & telecommunications (+4.8 percent vs +4.2 percent) and transport (+5.3 percent vs 6.9 percent) also increased solidly. In contrast, mining extended its sharp contraction (-18.8 percent vs -0.4 percent). On a quarterly basis, GDP expanded 1.0 percent, up from 0.5 percent in the previous quarter and above expectations of 0.7 percent. It was the largest quarterly rise in two years, as 15 of the 16 industries expanded. GDP Annual Growth Rate in New Zealand averaged 2.61 percent from 1988 until 2018, reaching an all time high of 7.30 percent in the third quarter of 1993 and a record low of -2.40 percent in the first quarter of 2009.
GDP Annual Growth Rate in New Zealand is expected to be 2.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in New Zealand to stand at 2.50 in 12 months time. In the long-term, the New Zealand GDP Annual Growth Rate is projected to trend around 2.60 percent in 2020, according to our econometric models.