18 Jun 2015
NZ Q1 GDP misses expectations, grew at the weakest pace in 2 yrs
FXStreet (Mumbai) - New Zealand's economy expanded at the weakest pace in two years last quarter as dairy and mining output slumped.
GDP growth was just 0.2% in the March quarter, according to Statistics New Zealand, coming in much weaker than the market and the RBNZ's forecast expansion of 0.6%. December quarter growth was revised lower from 0.8% to 0.7%.
Annually, the economy grew 2.6%, slowing from 3.5% in the December quarter, and falling short of the 3.1% expansion markets expected.
The main drags on growth last quarter were the agriculture and mining industries, where output fell 2.3% and 7.8% respectively. Business services were up 2.1% over the same period, while retail, trade, and accommodation grew 2.4%.
Mining activity was hampered by oil exploration and gas extraction, reflecting the sharp decline in global oil prices since mid-2014, which made it less profitable to continue drilling and decreased export receipts.
GDP growth was just 0.2% in the March quarter, according to Statistics New Zealand, coming in much weaker than the market and the RBNZ's forecast expansion of 0.6%. December quarter growth was revised lower from 0.8% to 0.7%.
Annually, the economy grew 2.6%, slowing from 3.5% in the December quarter, and falling short of the 3.1% expansion markets expected.
The main drags on growth last quarter were the agriculture and mining industries, where output fell 2.3% and 7.8% respectively. Business services were up 2.1% over the same period, while retail, trade, and accommodation grew 2.4%.
Mining activity was hampered by oil exploration and gas extraction, reflecting the sharp decline in global oil prices since mid-2014, which made it less profitable to continue drilling and decreased export receipts.