New Zealand’s gross domestic product (GDP) rose 0.8% in the June 2017 quarter, following a revised 0.6% increase in the March quarter.
“Strong export and domestic demand underpinned growth this quarter,” says Stats NZ national accounts senior manager Gary Dunnet.
“Demand for exports has resulted in strong production growth in manufacturing and service industries,” says Dunnet.
Exports rose 5.2%, with exports of goods posting its biggest quarterly increase in nearly 20 years.
Dairy and forestry products are driving this growth. Robust demand for dairy exports was reflected in increased production and product manufacturing, while dairy inventories ran down from their build-ups in recent quarters.
“Eleven of 16 industries grew in the latest quarter, with retail trade and accommodation having the biggest rise,” says Dunnet.
Construction eased again this quarter, falling from its recent peak in December 2016. Construction activity fell 1.1%, following the 2.1% decline in the March quarter. The latest drop reflected lower construction-related investment, including investment in non-residential and residential buildings, and infrastructure.
Service industries continued to grow this quarter, increasing 1.0%. Retail trade and accommodation, transport, and business services drove this growth.
“The World Masters Games and Lions’ rugby tour increased tourist spending on hotel rooms, food, and beverages – boosting a usually quieter time of year,” says Dunnet.
GDP per capita rose 0.3% this quarter. This increase follows a low result in the March 2017 quarter.
Annual GDP growth for the year ended June 2017 was 2.7% while the size of the economy in current prices was $268 billion.
