Monthly economic review: March 2014

6 Mar 2014

The Monthly Economic Review is an overview of the New Zealand economy. It includes the latest data on New Zealand’s economic growth, unemployment, inflation, merchandise trade and balance of payments figures, along with certain financial data (such as the Reserve Bank’s official cash rate). The unemployment rate, economic growth and central bank interest rates for several of our main OECD trading partners are also included. Each publication highlights a specific topic of interest. The Monthly Economic Review is produced eleven times per year.

Latest data and events

The ANZ Regional Trends showed that 13 of 14 regions recorded an increase in economic activity in the December quarter. Auckland was the only region to record a contraction in activity, with output falling by 0.1 percent. Nationwide, economic activity expanded by 0.9 percent in the December quarter, with activity in the South Island rising by 1.9 percent.

New Zealand’s terms of trade (which measures the quantity of imports that can be purchased with a fixed quantity of exports) rose a further 2.3 percent in the December quarter, as export prices fell to a lesser extent than import prices. New Zealand’s terms of trade are just 3.5 percent below the all-time peak reached in the June 1973 quarter, and are at their highest level since the December 1973 quarter.

Fonterra announced in February that it was increasing the forecast farmgate milk price for the 2013/14 season by a further 35 cents to $8.65 per kilogram of milk solids. When the dividend of 10 cents per share is included, the cash payout is $8.75 per share. The increase in the milk payout is expected to inject an additional $500 million into the rural economy.

A net 25,666 migrants entered New Zealand in the year ended January 2014, driven by fewer numbers migrating to Australia and an increase in the number of those returning from Australia during the year. This was the highest net migrant inflow figure since the year ended April 2004.

Publication Details
Published year only: 
Subject Areas
Geographic Coverage