2014.12.1723:58:53UTC+00New Zealand exceeds growth forecast of central bank

The economy of New Zealand expanded at a faster pace than what its central bank expected with lowered interest rates and immigration boosting consumption.

According to an official report from Statistics New Zealand, the country’s gross domestic product grew by 1% in the third quarter, higher than both the 0.7% expansion recorded during the second quarter and the Reserve Bank of New Zealand’s forecast of 0.9%. When compared to the previous year, the New Zealand economy grew by 3.2%.

Central bank governor Graeme Wheeler commented on December 11th that its interest rates will continue to be stimulatory with additional hikes to be introduced “at a later stage”.

Annual growth for the country was at its strongest since 2007, matching the 3.2% achieved in June, slightly below the expectation of economists for a 3.3% expansion. The growth in the third quarter was boosted by output coming from the agriculture and mining sectors, based on the statistics agency. Milk and farm production advanced for the first time in four quarters, while mining increased by the largest margin in five years.