Australia & New Zealand Economics

Australia & New Zealand Economic Outlook

30 January, 2017

Progress stalls

Australia will make almost no progress this year with GDP growth once again coming in closer to 2.0% than 3.0%. With growth in New Zealand set to accelerate from around 3.0% to 3.5%, the divergence in the economic fortunes of the two neighbours will become even starker. That said, both countries will share the same characteristics of weak wage growth and low underlying inflation. In Australia, this may lead to interest rates being cut from 1.5% to 1.0%, while in New Zealand it will prevent rates

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