NZ: Economy on excellent terms - ANZ

New Zealand’s economic expansion is getting a little long in the tooth; fiscal policy and the terms of trade are the two main factors that look set to keep growth ticking along, according to analysts at ANZ.

Key Quotes

“This week, we take a look at the make-up and the robustness of the current record high in the terms of trade. In short: it’s encouragingly diversified by good, but less so by market. Looked at individually, the global supply-demand balance for our main commodities looks price supportive, even though it appears global growth is past its peak. But if a more marked slowdown were to emerge, history suggests our commodity prices are likely to go down together.”

“The week ahead brings reads on both business and consumer confidence, as well as consents, the terms of trade, and the RBNZ’s latest take on financial stability risks.”