NZ Treasury: GDP growth to slow this year, coronavirus a new risk to economy

Dhwani Mehta FXStreet

New Zealand’s (NZ) Treasury is out with its monthly economic indicators report, with the key takeaways found below.

Data released over December and January showed a more optimistic near-term outlook for the domestic economy, but coronavirus poses new risk.

Businesses displayed reduced levels of pessimism, however, sentiment remains negative.

Rising house prices, falling median days to sell and strong consent issuance are expected to produce sustained high housing market activity into 2020.

Improvement in global outlook set back by coronavirus outbreak.

FX Implications

The New Zealand dollar remains on the back foot following the release of the above report, leaving NZD/USD meandering in a tight range near a multi-week low of 0.6453 reached last week.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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