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Westpac Expects New Zealand GDP to Rise 1% in the March Quarter

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Westpac said it expects New Zealand's gross domestic product to rise 1% in the March quarter, with seasonal distortions adding about 0.4 percentage points, according to a Wednesday report by the bank.

Manufacturing, household spending, and tourism were the standout contributors to growth in the quarter, the bank said, adding that the Iran conflict had yet to visibly weigh on activity, with any impact more likely to emerge in the June quarter.

Westpac said it is unclear if the Reserve Bank of New Zealand's policy committee will really be affected by the GDP figures, even if it is the only major data to come before their July 8 decision.

Westpac said its estimate aligns with the Reserve Bank of New Zealand's forecast in its May Monetary Policy Statement.

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