Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


GDP spike ends 2012 but 2013 shapes up as less positive

21 March 2013

GDP spike ends 2012 but 2013 shapes up as less positive

Economic growth, as measured by Gross Domestic Product (GDP), soared 1.5 percent in the final quarter of 2012; almost twice that forecasted by the Reserve Bank. Federated Farmers cautions this is historic and preceded the drought, which the primary industries are now grappling with.

“While the dollar spiked upwards on an expectantly strong fourth quarter it was tempered by the fact it is historic and overshadowed by 2013,” says Bruce Wills, Federated Farmers President.

“That said it was truly encouraging to see the strongest economic growth in three years.

“While the primary industries again led the pack we are pleased to be part of a pack, as opposed to being out there on our own.

“The final quarter of 2012 was truly broad-based with 15 of the 16 industries recorded turning out increases. While manufacturing was the one exception, it actually ended 2012 in a stronger position than when the year began.

“In terms of the primary industries we were up 2.6 percent in the final quarter and 11.7 percent for the year. This reflects some great growing conditions in the first half of the 2012/13 season; a benign winter gave way to an almost ideal spring and even December was good.

“While the first half of the 2012/13 season was great for production it was not for returns thanks to weak commodity prices and that overcooked New Zealand Dollar.

“But things rapidly went down hill almost as soon as 1 January 2013 ticked over.

“The lack of rain combined with long hot days and drying winds has resulted in the current North Island-wide drought with things also dry in parts of the South Island.

“This is not only impacting dairy and meat but also key parts of the horticultural sector. The silver lining must be the ideal conditions for fruit and wine producers.

“Another concern is whether the mix of GDP growth is sustainable because of the pick up in growth coming out of the non-tradable sector. The Reserve Bank can only do so much and is why we need all government policy to support the tradable sector.

“This makes the economic case for water storage which weaker agricultural GDP from quarter one 2013 will only reinforce,” Mr Wills concluded.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Royals: The Prince Of Wales And Duchess Of Cornwall To Visit

Prime Minister John Key welcomes today’s announcement that the Prince of Wales and The Duchess of Cornwall will visit New Zealand in November. This will be the second joint visit for Their Royal Highnesses to New Zealand. More>>

ALSO:

Tracey Martin Replaced: Ron Mark Is New New Zealand First Deputy Leader

Clayton Mitchell was the successful candidate for the Associate Whip position. Winston Peters was re-elected as Leader by the Caucus. Ron Mark was elected as the Deputy Leader with effect from 10am, Friday, 3rd July. More>>

ALSO:

Rebuild Rebrand: "Regenerate Christchurch" To Replace CERA

The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes control of the rebuild, Canterbury Earthquake Recovery Minister Gerry Brownlee says. More>>

ALSO:

Nauru: Scholars Urge Minister To Act On Deteriorating Democracy

“Since the 2013 election in Nauru, there has been a series of disturbing developments on the islands that indicate a severe deterioration in the state of its parliamentary democracy and in the rule of law,” say the scholars. More>>

ALSO:

Foreign Affairs: NZ Begins Presidency Of UN Security Council

Prime Minister John Key has welcomed the start of New Zealand’s month-long Presidency of the United Nations Security Council in New York. More>>

ALSO:

Labour: Cash For Charter Schools, Mould For State Schools

“Recently released financial statements show the Whangarei charter school He Puna Marama received $3.9 million in government funding to the end of last year. Yet their audited accounts show they only spent $1.4 million on education, leaving almost $2.5 million over two years unaccounted for." More>>

ALSO:

Kiwirail Plans Shift From Electric: National Urged Not To Take Backwards Step

The National Government shouldn’t drag New Zealand backwards by replacing its climate friendly electric trains with carbon-polluting diesel trains, the Green Party said today. More>>

ALSO:

Capital Connection:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news