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GDP Result Robust Under The Circumstances

Finance Minister Michael Cullen said the December GDP result, although below market expectations, was still good given that much of the impact of the 11 September terrorist attack was felt in this quarter.

The quarterly growth figure was 0.6 percent, producing an annual rate for the December year of 2.4 percent.

“It is significant for the economy’s future prospects that business investment grew by 8.5 percent over the quarter.

“The post-11 September contraction in tourism was a big driver in the December figures, contributing to a 7.3 percent decline in exported services.

“Indications are that tourist numbers have bounced back this year. That rebound – together with evidence that the strength in the domestic economy has been sustained - suggest that steady growth will be maintained through the next few quarters,” Dr Cullen said.


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