“We expect the economy to begin growing again toward the end of the year,” Reserve Bank of New Zealand Governor Alan Bollard said today. Despite this initial optimism growth “is likely to be slow and drawn out” and “it could also be erratic,” he added.
The statement comes just 9 days before Q1 gross domestic data is expected to show that the economy contracted for a fifth straight quarter. After seeing exports from the country plummet 17.4% in January, but with exports rising 6.26% in the first three months of the year, Q1 GDP may not be as bad as the last published data showed, -0.9%. This analysis contrasts the view of New Zealand’s Finance Minister Bill English, who earlier today said that his country’s export sector had been and will continue to be suffering.