The Reserve Bank of New Zealand (RBNZ) said on Tuesday that economic activity had returned to pre-Covid-19 levels supported by their success in curbing the epidemic well and rising global demand as well as higher prices of goods and exports.
Rising consumer spending and construction activity supported by substantial financial and fiscal stimulus also supported employment growth, according to its latest annual statement released during the Asian session.
However, according to Governor Andrian Orr and Deputy Governor Geoff Bascand in the statement, weaknesses are said to still exist and the recovery needs continued financial and fiscal support.
Governor Orr added that the continuation of the global economic recovery will still depend on the effectiveness of curbing Covid-19.
The RBNZ was one of the first advanced economies to signal to start reducing stimulus measures used to support the economy from a pandemic crisis, by signaling an interest rate hike next year.
Despite the RBNZ issuing an optimistic statement, the New Zealand dollar was still trading lower against the US dollar around 0.7030 towards the end of the Asian session.
