The New Zealand GDP figures have surpassed expectations by going up 2 percent, but it may come with consequences. This economic growth was helped by a surge in service activity, international tourism and exports following the borders opening and Covid-19 restrictions easing up. Service industries, warehousing, and transport were among the leading forces in growth. Economists had predicted a 0.9 percent increase, and the 2 percent increase is far beyond what they predicted, but NZ Herald business editor Liam Dann warns that this growth may force a higher OCR hike come February. Liam Dann says these numbers are good, but households will be in for a tough 2023 as the economy slows down and the economic downturn sets in.
