New Zealand's economy grew twice more than forecasted in the third quarter

The Central bank of New Zealand tried to suppress demand for controlling inflation, but experienced difficulties, which affected inflation. In the third quarter, the country's economy grew faster than economists expected, doubling its growth rate.

On Thursday in Wellington, the Statistical Office of New Zealand reported gross domestic product growth in the second quarter by upwardly revised 1.9%, and currently the figure increased by 2.0% compared to the second quarter. Economists' forecast is tending to a growth of 0.9%. The median estimate was 5.5% and the economy grew by 6.4% compared to last year.

ASB Bank in Oakland economist Nat Keall described the data as "stupendously strong," as economic activity will start at a hotter point than the RBNZ expected, due to the start of plans for the rest part of the tightening cycle.

The Reserve Bank is trying to trigger a recession in 2023 to suppress demand and keep inflation under control. The aggressive hike in the interest rate became even higher last month. The increase was 75 basis points, which is a record increase. Currently, the official monetary rate is 4.25 %. The bank said it will be 5.5% next year.