Aussie Slowdown Paves Way for NZ Catch-Up

The Australian economy's relative strength is slowly being eroded as interest rates and house prices continue to climb, potentially leading to a catch-up from New Zealand in terms of economic growth.

According to BNZ, Australia's GDP growth is expected to slow from 2.1% year-over-year in the second quarter to around 1.5% by the end of the year due to a tiring consumer and higher interest rates.

NZ's economy, on the other hand, is expected to build momentum after a brief hiccup caused by an oil price spike, with growth potentially overtaking Australia's around mid-2027 if forecasts hold true.