'Red hot' economy surges onward
Wednesday 7 July 2004
Record prices for beef and lamb and an eight-year high for dairy products are pushing commodity prices through the roof – while the economy is running "red hot".
By The LandlordThe improving commodity prices have come as some economists predict that the economy will keep running fast.
They expect growth of 4.5 per cent this year, then slowing next year.
If that rate of growth was achieved New Zealand would be among the faster-growing OECD economies for the third year in a row, only topped by a forecast 4.7 per cent growth in the United States.
The Kiwi economy has been sizzling for two years, without much help from exports, but they are expected to take up the economic reins from a slowing domestic sector later this year.
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It looks like the sleeping giant of New Zealand’s housing market could be stirring, with new REINZ data showing that both sales and prices in Auckland are up.
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.