Rugby World Cup Improves New Zealand GDP
December 23, 2011
sickness helvetica, discount sans-serif;”>New Zealand’s economy has been given a boost following spending during the Rugby World Cup.
The rate of economic expansion during the period from July – September was higher than expected and saw the country’s GDP up from 0.1% in the previous quarter.
The World Cup was a boon to the country following the Christchurch earthquake and success on the field, coupled with the prestige of hosting such a the tournament, had tangible fiscal results with the retail, hotel and service industries benefiting from locals and tourist alike.
Household consumption was also up by the largest margin for four years during this period with the food, drinks and tobacco markets all profiting.
Overall, manufacturing, consumption and fishing and forestry numbers assisted in offsetting vulnerabilities in the agriculture, construction and wholesale industries.
The upturn is not expected to endure, however. Mark Smith of ANZ National Bank stated, “We can expect a softer run of GDP numbers over the next few quarters as the rugby World Cup impact washes out of the data”.
New Zealand may also be hit hard by the fall-out from the Eurozone crisis and the slow rate of recovery in the US economy. This global climate could mean that interest rates in NZ remain low for much of 2012.
Smith continued, “We continue to look for a December 2012 start to the tightening cycle, barring a global meltdown”.