According to the Economic Outlook of the OECD, New Zealand’s economic development is set to continue to grow ahead of other OECD members in the following years.
What are some indicators of the country’s growing economy?
For one, in 2017, the country enjoyed a solid economic growth brought about by international tourists and consumption and the service sector. Even with the last quarter of the year being plagued by a decline in business confidence and unfavorable weather conditions.
The service sector’s contribution came mostly from computer system designs, marketing, and advertising, while wholesale and retail services have also contributed.
In the last quarter of December, a rise in household spending was seen where households spent more on dine outs and groceries.
For the current year, the country’s economy is projected to continue its growth albeit a bit subdued. However, consumption will be expected to slow down and investments will overtake. House price increases will bring about moderate wealth gains, while government infrastructure spending will see a rise as well.
This slow pacing in economic growth can be attributed to new government policies which have taken place. This can be expected as there are still speculations following the recent government change, and this can be felt in the first half of this year. Nevertheless, based on news reports, the country’s economy has seen a rise in the second half of 2018.
In fact, this rise has exceeded expectations thanks to the agricultural sector recovering from last year’s unfavorable weather – the hottest recorded summer by far. The service sector remains one of the strongest contributors of the country’s economic growth.