Australia And New Zealand Weekly

This report analyzes Q1 economic data for Australia and New Zealand, emphasizing that current GDP growth is heavily influenced by a data centre investment wave and seasonal distortions rather than underlying trends. Meanwhile, New Zealand faces a 'slouching' economy marked by weak consumption and the dampening effects of global geopolitical tensions.

Key Takeaways

• 1.Australia's Q1 GDP growth was driven primarily by a data centre investment boom, which poses long-term structural shifts despite short-term productivity measurement distortions.
• 2.New Zealand's economy is experiencing a 'slouching' phase due to the impact of Middle East conflict on oil prices, affecting household and business confidence.
• 3.The ECB is expected to hike rates due to rising core inflation, representing a minor recalibration of policy rather than a significant growth dampener.

Table of Contents

• Economic Insight
• The Week That Was
• Focus on New Zealand
• For the week ahead
• Economic & financial forecasts
• Corporate Directory
• Disclaimer