NZ Economy Beats Expectations as Construction and Agriculture Drive Growth

New Zealand's economy is expected to beat expectations and show growth in the June quarter, according to Westpac. The bank has upgraded its forecast to a 0.2% increase, up from an earlier prediction of a 0.1% decline.

The upgrade comes on the back of stronger-than-expected data from construction, wholesale trade, and agriculture, which have all shown increases in activity.

Westpac's senior economist Michael Gordon said the economy has done well to shake off the effects of the earlier US-Iran conflict, helped by still-low interest rates and strong export industries.

The RBNZ had predicted a flat outcome for the June quarter, but Westpac's forecast suggests a stronger growth rate. However, the central bank is expected to take a cautious approach in its next review, weighing upcoming inflation indicators rather than GDP data.