GDP result at top end of expectations

Finance Minister Michael Cullen today welcomed the December GDP result, saying it was at the top end of consensus forecasts.

The figures show the economy grew 0.8 per cent over the quarter and 4.4 per cent over the year.

The quarterly growth was broad-based with exports rising 2.8 per cent and household spending up 2 per cent.

“This continues what has been three years of healthy growth.

“However recent consumer and business confidence data suggest that activity is now beginning to cool off in response to the Gulf war, the rising dollar, the prospect of power rationing and the threat of drought,” Dr Cullen said.

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