ASB Quarterly Economic Forecasts: Big wheels keep on turning

8 Aug 2017

• Economic fundamentals are the big wheels keeping the global economy turning
• Domestic growth has much to do with people, with exports also faring well
• Housing market has cooled off, with a soft landing underway in Auckland

ASB economists continue to forecast a healthy economic growth outlook for New Zealand, and it’s migrants and tourists that are driving the momentum.

Economic growth is expected to increasingly gain momentum over the rest of 2017 and into 2018, according to the bank’s Quarterly Economic Forecasts.

ASB Chief Economist Nick Tuffley says net migration and tourism are...

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Speculators, land banking - election hot topics

Speculators, land banking - election hot topics
Monday 29 August 2016
Property speculators and land-banking will be targeted if former Labour Party leader Phil Goff becomes Auckland’s mayor in October.
By Miriam Bell
Goff today released the housing policy he plans to adopt if he is elected mayor and it focuses on increasing Auckland’s housing supply.
To this end, he proposes to tackle issues ranging across land availability, infrastructure and finance, migration flows, macroeconomic settings, and regulatory issues.
Goff said the current Council had done its bit by passing the Unitary Plan and it was now up to the incoming...

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Bank risk real LVR target

Bank risk real LVR target
Mitigation of bank risks, rather than dramatic house price correction, is the likely outcome of the Reserve Bank’s new LVRs, financial experts say.
Thursday, August 4th 2016, 12:26AM
by Miriam Bell
Last month the Reserve Bank announced it plans to introduce new LVRs which will require property investors around New Zealand to have a 40% deposit when borrowing for mortgages.

Many lenders – including Westpac, ASB and ANZ – implemented the proposed LVR changes immediately.
Following the Reserve Bank’s move, public attention has focused on the potential impact of the changes on the...

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