New Zealand’s economy remains one of the fastest growing in the developed world according to Finance Minister Bill English.
Statistics New Zealand today reported gross domestic product expanded by 1.0% in the September quarter. This took annual growth – from the September quarter 2013 to the September quarter 2014 – to a revised 3.2%. This is the same as annual growth to June 2014 and equals the highest annual growth rate since September 2007. Average annual growth was 2.9 per cent.
“We are in the unusual but encouraging situation where we have solid economic growth, more employment and higher wages, but few pressures on inflation,” English says. “This suggests New Zealand’s economic growth potential before inflation sets in – essentially the speed limit of the economy – is higher than expected previously.”
“Although lower inflation, and the consequent lower tax revenue, is making it more challenging for the Government to return to surplus this year, it is good for businesses and families who are facing lower price increases than would normally be expected at this point in the economic cycle,” he explains.
“Around 72,000 jobs have been created in the past year, and the average full-time wage is forecast to rise by $8,000 to around $64,000 by mid-2019.”
