Key View

• Interest rates in Australia and New Zealand could close in on the 0% level over the coming quarters should the deceleration in growth turn into a recession.
• We believe that the lack of policy space with regard to interest rates could see fiscal policy play a larger role in stimulating economic activity going forward.
• A stronger

Key View

• New Zealand’s Prime Minister announced the wellbeing budget in May 2019, increasing spending on infrastructure and social initiatives and cutting surplus forecasts after economic growth slowdown.
• Mental Health provision remains a priority for the authorities in New Zealand, highlighted in the country's 2018-2019 healthcare budget.
• New

Key View

• New Zealand’s full-year real GDP growth came in at 2.8% in 2018, marking a pickup from 2.6% in 2017.
• We at Fitch Solutions maintain our forecast for growth to remain broadly stable in 2019 at 2.8% due an acceleration in private consumption and investment, which we expect to offset a softening of export growth due to slower economic

Key View

• We expect relations between New Zealand and China to remain close due to the continued strong political and economic ties between the two countries, which we believe will not be hampered over the long-term despite alleged concerns over political interference by China.

Although concerns have mounted since October over a political

Key View

• We expect ties between New Zealand and Australia to remain strong despite a longstanding dispute over immigration issues that escalated in recent months.
• The bilateral relationship has solid foundations based on a long history of economic and security partnership.
• Cooler heads are also likely to prevail with the return of New Zealand