New Zealand posts 0.4% GDP growth in Q2

[WELLINGTON] New Zealand's gross domestic product rose a seasonally adjusted 0.4 per cent in the second quarter, led by an increase in activity in the agriculture and mining sectors, official data showed on Thursday.

Economists polled by Reuters had forecast production-based growth of 0.5 per cent for the quarter, to be 2.5 per cent higher than a year ago. The Reserve Bank of New Zealand had forecast quarterly growth of 0.6 per cent.

Gross domestic product rose a seasonally adjusted 0.2 per cent in the first quarter, the lowest quarterly rise in two years, as farming and low prices hit oil production.

Growth is expected to slow in coming months as falling global dairy prices have slashed farmer incomes and are seen reverberating through the economy, while construction activity to rebuild earthquake-hit Christchurch plateaus.

The Reserve Bank of New Zealand (RBNZ) last week downgraded its forecast for GDP to 2.1 per cent in March 2016 from 3.2 per cent in its previous monetary policy statement in June.

REUTERS