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Q1 GDP Data Shows New Zealand Economy was Improving before Middle East Conflict, ANZ Says

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New Zealand's first-quarter gross domestic product (GDP) data showed that the economy was on an improving path until the conflict in the Middle East broke out, ANZ Research said in a note on Thursday.

The New Zealand economy expanded 0.8% on a quarterly basis in the March quarter, slightly below ANZ's and the New Zealand central bank's forecasts of 1% growth.

High-frequency indicators suggest the economy stalled after the conflict broke out, but if oil prices stay down, there are good odds of the recovery resuming.

Upward revisions over the past year show moderate growth from the middle of last year, with fourth-quarter GDP expansion revised up to 0.5% from 0.2% quarter on quarter. These revisions mean that annual growth was 1.5%, beating ANZ's forecast of 1.3% and the Reserve Bank of New Zealand's forecast of 1.2%.

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