Drought slows economic growth
Drought slows economic growth – Media release
19 September 2013
Gross domestic product (GDP) rose 0.2 percent in the June 2013 quarter, Statistics New Zealand said today.
"The drought early this year influenced falls in agriculture and manufacturing this quarter, but this was balanced by strong growth in the service industries," acting national accounts manager Steffi Schuster said.
This latest result follows a GDP rise of 0.4 percent in the March 2013 quarter, when dry weather also slowed growth.
The
industries with the largest contributions to growth this
quarter were:
• business services (up 2.6 percent),
led by architectural and engineering services
•
retail trade and accommodation (up 2.1 percent), led by
furniture, department store, food, and clothing
retailing
These increases were partly offset by declines
in:
• Agriculture (down 6.4 percent), driven by a
large fall in dairy farming. Agriculture has now fallen 10.4
percent since it peaked in the December 2012 quarter, as low
rainfall has reduced production.
• Food, beverage,
and tobacco manufacturing (down 3.8 percent), mainly due to
a decrease in meat and dairy product manufacturing. Total
manufacturing was down 0.1 percent.
Economic activity for the year ended June 2013 was up 2.7 percent.
The
expenditure measure of GDP was up 0.1 percent in the June
2013 quarter. The main movements were:
• volume of
spending by New Zealand households (up 1.5 percent), mainly
due to increased spending on durables such as televisions,
clothing, and furniture
• investment in fixed assets
(up 3.8 percent), mainly due to increased construction of
infrastructure
• exports of goods and services (down
5.9 percent), driven by a fall of dairy exports.
GrossDomesticProductJun13qtr.pdf
ENDS