New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar rose after the data was released.
Gross domestic product expanded 0.7 percent in the three months ended March 31, from a 0.9 percent pace in the final quarter of 2015. That's ahead of the 0.5 percent forecast in a Reuters poll of economists, and the Reserve Bank's 0.6 percent estimate.
The Reserve Bank held off cutting interest rates at its meeting this month as it awaited more data on the economy, including today's report. Today's better-than- expected growth figures reduce the chances of an imminent cut. The kiwi dollar rose to 70.79 US cents, from 70.38 cents immediately before the figures were released.
Construction grew 4.9 percent in the latest quarter, the fastest quarterly rate since March 2014, with all construction industries showing growth and led by trade services and heavy civil engineering.
That reflects greater investment in construction, as investment in residential building rose 4.2 percent, non-residential building increased 4.4 percent and other construction advanced 12 percent, the highest quarterly growth rate since June 2014, due to increases in infrastructure such as roading and telecommunications.
On an annual basis, GDP grew 2.4 percent.
