Economic commentary & insight

The latest financial news and commentary from BNZ.

Weekly Overview

Thursday 26 January 2012

Nothing much new

The Kiwi dollar has however risen firmly against most currencies including the greenback against which it now sits just below 82 cents.

Over the year the chances are that NZ growth will be disappointing in light of the continuing risk of implosion in Europe, oil price shock from building tensions involving Iran, delaying of Christchurch rebuilding because of continuing earthquakes, and absence of a generalised consumer spending surge due to reduced labour market strength and worries offshore.

Nevertheless, with still firm export prices though with declines more likely than rises, good long term prospects supplying food and fibre, and portfolio divestment away from Europe, the Kiwi dollar is likely to have a firm tone all year.