The kiwi dollar has weakened in response to downward revisions in GDP expectations. Economists are now forecasting slower growth for the New Zealand economy, leading to a decrease in the currency’s value.

Several factors contributed to the revised forecasts:

• Lower global demand impacting exports
• Dairy price volatility affecting farmer incomes
• Uncertainty surrounding interest rate policy

The weaker kiwi dollar could provide some support to exporters, making their goods more competitive in international markets. However, it also increases the cost of imported goods, potentially leading to higher inflation.

Analysts are closely monitoring upcoming economic data releases for further clues about the direction of the New Zealand economy and the kiwi dollar.