GDP Figures Show Rebound Imminent
Acting Finance Minister Jim Sutton said today's gross domestic product figures were not unexpected.
The -0.7 figure was within the anticipated range.
Mr Sutton said that there were some temporary and some technical explanations for the decline, particularly the early end to the dairy season and low levels of construction activity compared with the high March quarter level. "It is important to remember that the annual growth rate is still a very healthy 4.8 percent. The outlook is for very satisfactory growth averaging around three percent a year."
He said it was expected that this current quarter's figures would lift significantly, reflecting tourism and export growth.
"The confidence in the rural sector will flow through to the rest of the economy. In addition, many urban based exporters are now taking advantage of continued strong world growth and a favourable exchange rate."