Parliament

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

 

Economy grows by 3.1 per cent, on right track

Economy grows by 3.1 per cent, on right track

The economy continued to grow by more than 3 per cent in the year to 31 December, confirming that New Zealand remains on the right track under the Government’s economic programme, Finance Minister Bill English says.

Statistics New Zealand today reported gross domestic product expanded by 0.9 per cent in the December quarter and 2.1 per cent in the second half of 2013.

This took annual growth – from the December quarter 2012 to the December quarter 2013 - to 3.1 per cent. Average annual growth was 2.7 per cent.

“Providing we stick with the Government’s successful programme, New Zealanders can lock in the economic gains we’re starting to see through more jobs and higher incomes,” Mr English says.

“Business and consumer confidence remains high, manufacturing activity has been expanding for almost a year and a half and the current account deficit is less than half of what it was five or six years ago.

“However, we still have plenty of work ahead of us to ensure these positive indicators are translated into real opportunities and progress for New Zealanders and their families.”

The solid growth was widespread across the economy in the December quarter.

Manufacturing made the largest contribution to quarterly GDP growth, increasing by 2.1 per cent, taking overall manufacturing activity to its highest level since March 2006.

Wholesale trade, including machinery and equipment, increased 3.2 per cent in the quarter. Investment in plant, machinery and equipment was up by 7.5 per cent to its highest level since the series began.

“This confirms businesses are investing for the long-term to support productivity and higher wages,” Mr English says.

New Zealand’s 0.9 per cent quarterly GDP growth was strong by the standards of other developed countries. It compares with 0.6 per cent in the United States, 0.7 per cent in the United Kingdom and Canada, 0.8 per cent in Australia and 0.2 per cent in Japan.

“We are making good progress but we need to remain focused on making the enduring structural changes needed for New Zealand to reach its economic potential,” Mr English says.

“Now is certainly not the time to put all of this at risk with untried experiments such as going soft on inflation through changes to the Reserve Bank Act or reverting to big-spending and ineffective policies that have failed in the past.”
Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Navy’s Dealings With Fat Leonard, And Twin Peaks

At an official level, our “she’ll be right” attitude routinely spills over into a keen resentment of anyone who suggests the outcomes may be less than satisfactory. Oversight at any level of performance is not New Zealand’s strong suit – from our one-chamber Parliament on downwards...

The Navy has now gone one step beyond. It won’t even ask itself whether it did a good job. More>>

 

NZDF: Fifth Rotation Of Troops Heads To Iraq

The fifth rotation of New Zealand Defence Force troops left today for a six-month mission training Iraqi soldiers. More>>

ALSO:

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East? More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election