Fitch Ratings said it expects "strong macroeconomic fundamentals including low unemployment, steady economic growth and population growth" to continue in Australia and New Zealand. GDP growth of 2.8 per cent in Australia and 3.1 per cent in New Zealand will see RMBS performance likely to remain stable, despite the likelihood of further declines in Australian residential property prices, and flat house prices in New Zealand. Fitch expects a marginal increase in late-stage arrears as properties-in-possession are likely to take longer to sell, while ABS performance is expected to remain stable, as a likely softening in auto-market conditions will reduce demand for new vehicles and support demand for used vehicles, supporting asset recoveries.