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New Zealand ended 2013 with reasonable degree of momentum - ANZ

FXStreet (Bali) - ANZ Economists shared the key points after the recently released New Zealand GDP Q4, which came in line with expectations.

Key Quotes

"The economy ended 2013 with a reasonable degree of momentum, with the 0.9 percent rise in production GDP in line with the market consensus. Annual growth eased slightly to 3.1 percent."

"The Q4 data confirmed a broadening of the domestic expansion
, with rises in all three of the major production components and 11 of the 16 production GDP groups."

"Our attention is more on the outlook as opposed to history: we’re still
picking strong growth through 2014 with all our proprietary data printing
strong."

"Trends in the manufacturing sector are looking encouraging overall
(though the sector is coming off a low base); recall this is a sector that has been under the pump for numerous years and is still suffering from an elevated NZD."

"The growth outlook is not consistent with an OCR of 2.75 percent
, and the RBNZ is set to keep moving the OCR towards less stimulatory settings. We’re still picking another two hikes before a pause."

"With the durability of the economic expansion key, our attention is turning to productivity trends. Recent data is encouraging."

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