New Zealand trumps Australia

The recent earthquake in New Zealand may put a small dent in activity in the near-term, but it won’t prevent the economy from growing by around 3.5% next year. In fact, the extra boost to activity from the necessary reconstruction work could mean that GDP growth is even stronger. While the surge in commodity prices will support the Australian economy next year, it’s unlikely to grow by much more than 2.8%. As such, economic growth in New Zealand will be faster than in Australia for the fifth year in a row.