The Financial Times has published statistics on the financial performance of New Zealand. The figures showed that New Zealand’s GDP was growing. For example, in the last three months of 2016, the increase was estimated at 0.4%.The first quarter of 2017 has shown a growth rate of 0.5%. However, such growth does not suit the world community; the market forecasted a more impressive growth of 0.7%.
Unjustified expectations are associated with the shocking drop in export of milk and dairy products. The market sank a record 11%. This is what has caused the inadequate GDP growth of the island state.
We recall that New Zealand is one of the world leaders in the export of dry and condensed milk. From dairy products, it is also possible to highlight butter shipment, which is essential for the global market.
Negative statistics on dairy products has led to the general reduction in export (for all product groups and services) by 0.4%. Despite depressive figures, experts note an excellent growth in agricultural indicators in the first months of 2017.
The material that was published in an authoritative business newspaper contained other figures for New Zealand. Thus, the business community became aware that the hotel business and retail trade had grown by 1.8%. Transportation and warehousing services fell by 2%. The construction sector showed the decrease in the last quarter (the decline amounted to 1% relating to the figures of the last quarter of 2016).
This publication, of course, will be reflected in the quotes of the national currency. We assume that the New Zealand dollar will show more volatility in the coming days than usual.
The material was prepared with the participation of Marina German,
a leading analyst of the brokerage company CT Trade