New Zealand's economy shows robust growth

New Zealand’s economy shows robust growth

New Zealand's economy grew by 2.3% in the first quarter due to the increase in housing and consumer spending. This is the fastest growth in the last 4.5 years and this rate invigorated investors' expectations that the central bank will raise interest rates next month. Investors pointed out that the booming economy may prompt central bank to raise interest rates in July for the fourth time this year to 6%. Consumer spending, which accounts for 60% of the economy, rose by 2.9% in the quarter, according to New Zealand Statistics Office. In March, new car registrations surged by 22% from a year earlier. In the first quarter, construction of housing and non-residential buildings soared by 9.1% while investment in new housing increased by 9.8%. House prices climbed by 22% in Jan-Mar 2004 period as 28'000 migrants arrived to New Zealand.