Breaking: New Zealand GDP contracts 1.6% QoQ in Q1, Kiwi pops and drops
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New Zealand's (NZ) Gross Domestic Product (GDP) shrank 1.6% in the first three months (Q1) of 2020 vs. -1% expected and +0.5% booked in the Q4 2019, according to the latest data published by the Statistics NZ on Thursday.
It is the largest quarterly fall since the 2.4% decline in the March 1991 quarter, as the coronavirus pandemic-imposed lockdown restrictions had a severe impact on the economic activity.
On an annualized basis, the NZ economy unexpectedly contracted 0.2%% in Q1 vs. +0.3% expected and +1.8% seen in the previous quarter.
About NZ GDP
The Gross Domestic Product released by the Statistics New Zealand is a measure of the total value of all goods and services produced by New Zealand. The GDP is considered as a broad measure of New Zealand economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the NZD, while a falling trend is seen as negative (or bearish) for the NZD.
FX implications
The Kiwi refreshed daily highs at 0.6480 on the NZ Q1 GDP miss before quickly dropping 30-pips to near 0.6455 region, where it now wavers.
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