Sharechat Logo

Moody's Analytics say World Cup boost hid a struggling economy

Wednesday 21st December 2011

Text too small?

Economic research group Moody’s Analytics warns that New Zealand’s growth is likely to fade after the boost from the Rugby World Cup, as global financial pressure and industry weakness hit the country’s exports. 

The group expects a ‘solid’ 0.6 percent growth when Statistics New Zealand releases Gross Domestic Product for the three months to Sept. 30 tomorrow, but says that both the World Cup and the Christchurch rebuild have off-set the underlying trends of a “struggling economy.”

New Zealand is still seeing consumer caution and a continuing trend of households choosing to save and repay debt rather than spend.

They point also to the manufacturing sector, which has taken a hit from weaker dairy and meat processing as well as wholesale trade.

Combined with the European debt crisis and slowing Asian demand, this weakness will curtail the temporary growth seen in retail, tourism and service sectors following the World Cup, Moody’s Analytics says.

Residential construction has also remained weak, but is recovering after the Canterbury earthquakes, thanks to rebuilding efforts, and served to compensate for a similar weakness in non-residential building.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report