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New Zealand Economy More Resilient than Feared in June Quarter, ANZ Says

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New Zealand's economy was more resilient than feared even as the gross domestic product (GDP) growth slowed down to 0.2% on a sequential basis in the June quarter, compared with the average growth of 0.8% over the prior three quarters, ANZ said in a Thursday note.

The bank had forecast of 0.1% quarter-over-quarter growth, while the New Zealand central bank had forecast zero growth. Upward revisions to data from the previous quarters took annual GDP growth to 2.6%, above the lender's forecast of 2.2%. The revisions were mainly due to higher estimates of construction activity.

The expenditure GDP measure expanded by 0.4% on a quarterly basis and 3% on an annual basis.

Many parts of the country's economy continued to grow despite higher fuel prices impacting sectors such as hospitality and transportation. This included a rise in construction activity from low levels and growth across a range of business-facing and government-led services industries. However, the recovery is likely to remain patchy in the face of ongoing global volatility as well as the recent rise in oil prices.

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