The Government’s painting a rosy view of the economy after New Zealand’s gross domestic product grew by 0.9 per cent for the three months to the end of June 2016.
It means more jobs and more opportunities for New Zealanders, according to Finance Minister Bill.
According to Statistics New Zealand figures, Gross Domestic Product grew by 0.9 per cent in the three months to June 30, with the construction sector leading this growth. File Photo
“The third highest growth rate in the OECD shows the government’s management of the economy is delivering.”
Despite the tough period the dairy industry has been through, Bill says the country is in the unusual position of enjoying solid growth, rising employment and real wages at the same time as very low inflation.
New Zealand’s annual growth rate of 3.6 per cent is double the OECD rate of 1.6 per cent, and it compares with 3.3 per cent in Australia, 2.2 per cent in the United Kingdom, 1.2 per cent in the United States and 0.8 per cent in Japan.
The June result means our economy is now worth more than $250 billion for the first time.
Growth was led by construction which grew by 5.1 per cent over the quarter, and residential construction is also up 10 per cent over the last year. The Finance Minister says this reinforces the fact that New Zealand is “in the middle of a significant building boom”.
Bill says while the result is solid and the outlook relatively positive, there are many risks around.
“We cannot afford to take our current economic performance for granted. And the Government’s focussed on building a stronger, more resilient economy,” the Finance Minister says.
Statistics NZ national accounts senior manager Gary Dunnet says household spending is also up 1.9 per cent, with Kiwis spending more on “going away, eating out, and furnishing their houses”.
He says strong international demand also saw exports increase 4.0 per cent, with exports of goods posting its biggest quarterly increase in nearly 20 years. This increase was driven by exports of dairy products, meat, and fruit.
“Eleven of the 16 industries were up this quarter, with construction once again providing a boost to production.”
Service industries also continued to grow, with a 0.7 per cent increase, with the main drivers being rental, hiring, and real estate services; retail trade; and health care.