Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Annual National Accounts Show Increased Saving

National Accounts: Year ended March 2001

Annual National Accounts Show Increased Saving

Statistics New Zealand today released the annual national accounts for the year ended March 2001. Unlike the regularly published quarterly gross domestic product (GDP) series, these statistics make no adjustments for the effects of price changes. The annual accounts recorded growth of 6.3 per cent for the year ended March 2001; however when the effects of inflation are removed, there was an increase of 2.6 per cent in constant price GDP. The 6.3 per cent increase was largely driven by a significant lift in export receipts, up 23.9 per cent, as exporters gained from both improving commodity prices and the depreciation of the New Zealand dollar.

The real strength of the annual accounts is the added information they provide on sources of income, spending patterns and national saving. The two key components of national income, compensation of employees and business profits, both recorded strong growth. Compensation of employees was up 5.2 per cent and business profits up 8.5 per cent. Although net investment flows out of New Zealand were up $1.1 billion (up 17.1 per cent), national disposable income, which measures the income available to New Zealand residents for current consumption or saving, still rose 5.3 per cent. Final consumption expenditure (private and Government) was up 3.5 per cent, resulting in national saving recording an increase, up from $0.7 billion to $2.3 billion. As a percentage of national disposable income, saving was 2.6 per cent, up from the 0.8 per cent in 2000 but below the last decade's peak of 4.7 per cent in 1996.

Compensation of employees increased 5.2 per cent in the year ended March 2001. This follows growth of 3.0 per cent in 2000. The lift in the latest year's compensation resulted largely from an increase in employment, up 2.2 per cent, and a rise in average weekly earnings, up 2.2 per cent.

Gross operating surplus increased 7.9 per cent in the year ended March 2001. When provision for depreciation is deducted, net operating surplus grew 8.5 per cent, following 8.2 per cent in 2000. The latest increase was largely export-led with agriculture and manufacturing industries being the major contributors. Net operating surplus is an approximate measure of pre-tax business profits before the deduction of net interest payments.

There was a substantial improvement in the profitability of agriculture in the year to March 2001, with increased farmgate prices and higher levels of production. The self-employed income of farmers is estimated to have increased $1.6 billion or 59.1 per cent. Earnings from sheep, cattle and dairy products were major contributors to the improvement in farm profits, with higher overseas prices, increased volumes of production and favourable exchange rates all contributing.

Household consumption expenditure increased by 4.3 per cent for the year ending March 2001, following a similar increase in the previous year. This reflected relatively buoyant household incomes as a result of increased employment levels and higher earnings for both paid employees and the self-employed. Increased spending occurred across most commodities with the largest rise in services up 5.6 per cent. Vehicle operating costs were up 10.4 per cent, largely due to increased petrol prices. Other increases in spending were in restaurants and hotels, recreation and education services.

Households continue to spend more than they earn. Although household consumption expenditure increased by 4.3 per cent, the disposable income of households rose more, up 5.9 per cent, resulting in the level of household saving rising from -$3,147 million to -$2,363 million. The saving ratio rose from -5.1 per cent to -3.6 per cent during the March 2001 year.

Current spending by central government rose 0.3 per cent in the March 2001 year. However, this small rise is influenced by the purchase of the $631 million frigate Te Mana in the March 2000 year. Excluding this purchase, spending in the latest year increased 4.0 per cent. Both education and health spending were up. In the case of education, the settlement of the teachers' collective employment contract contributed to the increased spending. Health spending was up as a result of extra resources being allocated to cope with population growth and to extend health services, including additional surgery to reduce waiting lists.

The rise in export earnings resulted in a significant improvement in the external current account with the deficit reducing from $7.4 billion (7.0 per cent of GDP) to $5.4 billion (4.8 per cent of GDP). There was a complete turnaround in the balance of trade in goods and services, moving from a deficit of $1.3 billion to a surplus of $1.9 billion in the latest March year. After allowing for a further deterioration in net international investment income, net borrowing dropped from the record high in 2000. Net borrowing from the rest of the world fell from $7.8 billion to $5.6 billion.

Brian Pink Government Statistician END

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: