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


Growth continues despite drought

20 June 2013

Growth continues despite drought

Gross domestic product data for the March quarter shows the New Zealand economy continues to grow despite the impact of the nationwide drought.

“This confirms New Zealand is on the right track, in line with Budget forecasts of economic growth, more jobs, rising wages and a return to fiscal surplus in 2014/15,” Associate Minister of Finance Jonathan Coleman says.

Gross domestic product grew 0.3 per cent in the three months to 31 March, following better than expected 1.5 per cent growth in the December quarter. This took annual growth – from the March quarter 2012 to the March quarter 2013 - to 2.4 per cent (or 2.5 per cent on an annual average basis).

“Supported by the Government’s economic programme, the New Zealand economy is now performing favourably against most developed countries,” Dr Coleman says.

New Zealand’s growth compares with 2.5 per cent in Australia, 1.8 per cent in the US, 1.4 per cent in Canada, 0.2 per cent in Japan, 0.6 per cent in the UK and –1.1 per cent in the Euro area.

“The nationwide drought had a significant effect on growth, with agriculture, forestry and fishing reducing GDP by 0.3 per cent in the quarter,” Dr Coleman says.

“However, indications are that momentum will continue this year driven by rising consumer and business confidence, and a lift in construction. The increase in household spending signals that people are feeling more secure and optimistic.

“As the Budget forecasts show, we are on track for 2.5 to 3 per cent-plus growth over the next few years. This is supporting job growth and higher wages, along with the Government’s target of returning to surplus in 2014/15.

“With the economy on the right track, the Government will continue supporting businesses through its Business Growth Agenda aimed at improving New Zealand’s productivity and competitiveness as a way of fostering job growth and lifting wages.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Q+A Transcript: Groser ‘Not Expecting’ Failure At UN Climate Talks

‘I will be very surprised if we don’t get an agreement. I think it’s a completely different situation to Copenhagen for a number of reasons. We’ve got a much more realistic negotiating proposal on the table. Secondly, I think the science has strengthened...’ More>>


Greenpeace Protest:

Climate Talks, Immigration And Housing: PM's Post Cabinet Press Conference

Prime Minister John Key began by talking about his recent attendance at the APEC and ASEAN summits. He segued neatly from the opportunities available in Vietnam to outlining his upcoming itinerary which includes Malta, Paris and Berlin. More>>


After Urgent Law Change: Beneficiaries Urged To Act Immediately

I am hoping that thousands more people will be enabled to lodge their review... people without internet, who don't even realise that this has been happening. If just a fraction of the people on facebook can help others to put in reviews tomorrow it could improve so many more peoples Christmas. More>>


Auckland: Phil Goff To Run For Mayor In 2016

Phil Goff has today announced his decision to stand as an Independent candidate for Mayor of Auckland next year... As Mayor, Phil Goff will focus on a number of issues that directly impact on the lives of Aucklanders, including tackling traffic congestion and increasing the housing supply. More>>


Foreign Affairs: Mike Moore To Step Down As US Ambassador

Yvonne and I are giving notice to MFAT that we will be leaving the Post just before Christmas on the 16th December... I am now the longest serving continuous Ambassador to the US. I didn’t seek this job but felt I should do it because great issues were at stake. The time was ripe for it. More>>


Fox Glacier: Seven Dead In Helicopter Crash

The operation to recover the victims of Saturday’s helicopter crash at Fox Glacier is a technically challenging task calling for specialist skills in an unforgiving environment, says operation commander Inspector John Canning. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news