New Zealand's economy has grown faster than the central bank has earlier predicted. The accelerated growth in the third quarter is more than economists have foreseen as record immigration and low interest rates stimulated consumption.

According to Statistics New Zealand, the country's gross domestic product has increased by 1 percent from the second quarter which is more than the average forecast of 0.7 percent of 12 economists by Bloomberg. In the same quarter in 2013, New Zealand's GDP soared 3.2 percent.

The Reserve Bank of New Zealand had previously released a forecast of 0.9 percent when it indicated a prolonged pause in the central bank's tightening cycle with lower inflation than what was predicted before. On Dec. 11, RBNZ Governor Graeme Wheeler said interest rates continue to stimulate and he expected further increases at a "later stage."

Stephen Toplis, Bank of New Zealand head of research, said the country's economy is "trucking along very nicely" and the pace of growth would leave the central bank on a tightening bias. He added that there was nothing in the data that would suggest the central bank needs to be more aggressive in keeping interest rates on track.

New Zealand's economy has been buoyed by the NZ$40 billion of Christchurch rebuild, low interest rates and the high immigration rate in October that further boosted employment opportunities and spending. However, falling dairy prices may slow down exports and reduce farm spending.

Meanwhile, the New Zealand dollar may soon be equal to the Australian dollar as early as the first quarter in 2015 following the uncertainty surrounding Russia's economy and the cautious tone of the Federal Reserve.

The Otago Daily Times reported that the Kiwi has reached 95 Australian cents before slightly dropping to 94.72 Australian cents. Craigs Investment Partners broker Peter McIntyre said the New Zealand dollar is heading for "parity" with the Australian currency. While Australia is considering interest rate hikes while New Zealand evaluate cutting interest rates.

He believes Australia's weakening commodity prices and the economy's structural change were hurting the country. House prices in Australia remain under pressure in the eastern part of the country and economic growth was not the same as New Zealand.