Kiwi Economy Beats Expectations, But Growth Remains Sluggish Amid Global Tensions
New Zealand's economy experienced more growth than anticipated in Q2, according to Statistics New Zealand data. The country's GDP grew by 0.2% quarter-on-quarter, surpassing market expectations of a 0.1% increase and the Reserve Bank of New Zealand's forecast of no growth.
The year-over-year growth rate reached 2.6%, exceeding analyst predictions of a 2.2% rise. However, despite this uptick in growth, overall economic expansion remains sluggish, impacted by the ongoing Middle East conflict.
The U.S.-Israel war with Iran has driven up oil prices and created heightened uncertainty, putting pressure on New Zealand's economy. This trend was evident in the Reserve Bank of New Zealand's decision to raise the official cash rate by 25 basis points to 2.75% earlier this month.