ASB economists continue to forecast a healthy economic growth outlook for New Zealand, and it’s migrants and tourists that are driving the momentum.
Economic growth is expected to increasingly gain momentum over the rest of 2017 and into 2018, according to the bank’s Quarterly Economic Forecasts.
ASB Chief Economist Nick Tuffley says net migration and tourism are at record highs and construction, a key driver of growth, is directly benefitting from greater numbers of people.
Strong population growth is also supporting domestic demand and consumption, a key driver of growth in Q1, shows no signs of abating.
“People are keeping construction sector booming and the tills ringing in shops, and we’ve just experienced the feel-good effect of sports tourism on the back of the Lions’ tour,” Tuffley says.
“With people power behind us we are expecting GDP growth to average 2.7% over 2017 before lifting to a peak growth rate of 3.7% over 2018 and 2019.”