Westpac's unchanged view is that "the...>

NEW ZEALAND: Westpac's unchanged view is that "the next phase for the New

Zealand economy will be a modest and temporary pickup in growth on the back of

government spending. Ironically, that view probably makes us optimists relative

to the fickle winds of general sentiment, which have suddenly become very

negative. From a personal perspective, that will be a nice change after being

the relative pessimist for so long! However, we view this pickup as temporary.

Beyond 2019, we continue to expect a gradual cooling in economic growth. The

economic slowdown to date has been a domestic spending phenomenon. The flipside

of lower spending is higher saving, as evidenced by New Zealand's shrinking

overseas net debt position. What we are now witnessing is the long-awaited

rebalancing in the New Zealand economy. The economy may be slower, but it is

gradually moving onto a surer long-run footing."