New Zealand's Retail Sector Grows More Than Expected

According to data released by Statistics New Zealand, retail sales went up by 3.3% in the second quarter, above expectations of 2% and the previous quarter’s 2.8%. Excluding the automobile sector, retail sales rose by 33.3% during the second quarter, after contracting by 6.6% in the previous quarter.

New Zealand's numbers are linked with its recent economic rebound, after it re-opened its economy along with other countries. However, the spread of the delta variant, which is believed to be more transmissible than other strains, is putting the recovery process at risk and could push governments to reimpose economic and social restrictions. In the case of New Zealand, the government decided to extend the national lockdown until at least the end of the week.

Prime Minister Jacinda Ardern commented that the recent surge in the number of cases wasn't unexpected and that it is still possible to eradicate the virus. The announcement came after health authorities reported 35 new local infections, the highest daily number of cases since April last year, bringing up the number of total active cases to 107 out of a population of 5 million people.

"The safest option for all of us right now is to hold the course for longer," commented Prime Minister Jacinda Ardern. "If the world has taught us anything it is to be cautious with this variant of COVID-19," she added, highlighting that the delta variant has changed the rules of the game.

Since the beginning of the pandemic, 3,096 COVID-19 cases have been reported in New Zealand, as well as 26 related deaths, making it one of the least affected countries in the world.

New Zealand's vaccination campaign has been heavily criticized because it has been relatively slow, at least compared to the campaigns that are being advanced by other developed states. So far, 2.61 million doses of the vaccine have been distributed among the local population, with 954,000 individuals now fully vaccinated, accounting for 19.4% of the total population. The government has already expressed that it is satisfied with the current vaccination rate.

Since the beginning of the week, the New Zealand dollar has advanced by 1.66% against the US dollar, recovering from last week's 3.01% drop. By 10:14 GMT, the New Zealand dollar gained 0.71% against the greenback, hitting the 0.6938 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.