22 December 2005
Media Statement

Cullen on GDP result

“The weak growth figures for September indicate that the long anticipated slowdown might come a little sooner than envisaged in the Treasury December forecasts,” Finance Minister Michael Cullen said today.

Dr Cullen was commenting on the latest GDP data showing growth over the September quarter of 0.2 per cent. This was at the bottom end of market expectations and below the Treasury’s estimate.

“The continued evidence of a two speed economy with strong domestic demand and a struggling export sector is obviously cause for concern.

“But the outlook is still for a fairly soft landing, supported by continuing strength in both business investment and the labour market.

“The results show business investment grew 6.9 per cent over the September year and 2.2 per cent over the quarter, “ Dr Cullen said.

ENDS

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