HSBC picks NZ economy as third strongest in world in 2014

HSBC picks NZ economy as third strongest in world in 2014
Tane Williams
A new report from banking group HSBC predicts New Zealand will have the third highest growth rates for 2014, and that our "rockstar economy" will continue in 2015

New Zealand was the OECD’s third fastest-growing economy in 2014, according to estimates from banking group HSBC. And our “rock star economy” should continue in 2015, says HSBC’s Paul Bloxham, the economist who first coined the phrase 12 months ago.

In a report released today, HSBC says New Zealand's economic performance in 2014 is likely to have been topped only by Korea and Hungary.

GDP growth was strong, business confidence was at 20-year highs, consumer confidence (and therefore spending) was also high and there was a substantial upswing in construction across the country, the report says.

The report’s authors, Bloxham and economist Daniel Smith, remain upbeat about New Zealand’s medium-term growth prospects, despite lower dairy prices and higher interest rates.

“We expect above-trend growth to continue over 2015,” the report says. “This should still see New Zealand outperform most other developed nations [with] growth expected to be supported by a continued upswing in construction, a buoyant consumer and a falling NZD.”

Rockstar economy or one-hit wonder? Top Kiwi economic and business pundits give their reading of the New Zealand economy in 2015. From the latest issue of Idealog magazine. Subscribe now or view the article here