Australia And New Zealand Weekly

Latest edition · June 6, 2026

WestpacWeekly20260608

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.

The report highlights a disconnect between top-line GDP data and underlying economic conditions in Australia, driven by data centre construction and weather-related seasonal fluctuations. In New Zealand, the economy is characterized by soft demand, cautious household spending, and cautious business sentiment amid geopolitical uncertainties, though the export sector shows resilience. Westpac expects the RBNZ to hike rates three times this year, while European policy remains focused on managing inflation through targeted rate increases.

Key takeaways from the latest edition

• 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.

What this series covers

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

Edition archive

• WestpacWeekly20260608

  June 6, 2026

• WestpacWeekly20260601

  June 1, 2026

• WestpacWeekly20260518

  May 19, 2026

• WestpacWeekly20260511

  May 11, 2026