The surprising strength of economic growth in the second quarter has led us to revise up our forecasts for GDP growth in the 2018 calendar year from 2.5% to 3.2% for Australia and from 2.5% to 2.7% for New Zealand. But an easing in investment growth and slower consumption growth may mean that GDP growth in Australia drops back to 2.5% next year. And in New Zealand, the recent plunge in business confidence will probably play a part in an easing in GDP growth to around 2.2% in 2019.
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