New Zealand’s Economy Bounced Less Than Expected in Q4

New Zealand’s economy grew less than economists expected in the final three months of 2021 as it bounced back from a contraction caused by a lockdown in largest city Auckland.

Gross domestic product rose 3% from the third quarter, when it fell a revised 3.6%, Statistics New Zealand said Thursday in Wellington. Economists anticipated a 3.3% increase. From a year ago, the economy expanded 3.1%.

The Gross Domestic Product (GDP), released by Statistics New Zealand, highlights the overall economic performance on a quarterly basis. The gauge has a significant influence on the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision, in turn affecting the New Zealand dollar.

A rise in the GDP rate signifies improvement in the economic conditions, which calls for tighter monetary policy, while a drop suggests deterioration in the activity. An above-forecast GDP reading is seen as NZD bullish.