Weekly economic update

Fortnightly Economic Update - 4 March 2022

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  • The conflict in Ukraine is adding to uncertainty. For New Zealand, the direct economic impacts of the conflict appear modest, but the indirect effects are potentially substantial as higher petrol prices add to inflation, slow household spending and dampen sentiment.  
  • Omicron spread drives sharp falls in business and consumer confidence.
  • The Reserve Bank of New Zealand raised interest rates, noting the risks to the outlook from developments in Ukraine and from rising inflation expectations.
  • Surging commodity prices will weigh on global growth and add to inflation.    
  • Australian GDP bounced back in late 2021 while more timely indicators show resilience to Omicron.