Source: New Zealand Government
The economy has rebounded strongly in the June quarter as the easing of restrictions and reopening of the border boosted economic activity, meaning New Zealand is well placed to meet the next set of challenges confronting the global economy.
GDP rose 1.7 percent in the June quarter following a decline of 0.2 percent in the previous March quarter. Forecasts from economists had ranged from 0 to 1.8 percent, reflecting the volatility in the economic data recently. The economy is nearly 5 percent bigger than before the start of the pandemic, similar to Australia and ahead of the US, EU, UK and Canada.
“This is a positive result and underlines the resilience of the economy. Our strong growth in the June quarter comes at a time the IMF estimated that global output shrank,” Grant Robertson said.
“We’re targeting investment to give New Zealanders greater economic security. Our economic plan is working in what continues to be an extremely challenging global environment. More people are in work, wages are outpacing inflation and our economy is stronger that it was before the pandemic started, while the Government’s books are in good shape.
On an annual basis, economic activity was 1 percent higher than the previous year. The size of the economy was $360 billion.
“The services sector, which makes up two-thirds of the economy, rose 2.7 percent as New Zealanders and returning overseas visitors spent more on transport, accommodation, eating out and sports and recreational activities. Exports jumped 20.5 percent, boosted by the return of tourists.
“As we move into this new phase and away from the emergency Covid-19 settings, our economy is 5 percent larger than it was before the start of the pandemic. This means we are well placed to hit the ground running and take the opportunities available to New Zealand’s economy from our strong pandemic response.
“New Zealand is well positioned to respond to the challenges ahead. The global economic outlook is being revised downwards as high inflation, the war in Ukraine and ongoing pandemic-related disruptions continue to affect the countries we trade with.
“We are not immune to what happens beyond our borders, but we start on the front foot and with optimism. We produce goods and services that the world demands and our ongoing investment a low carbon future reduces our reliance on volatile global energy markets and attracts people and investment.
“We are continuing to focus on lifting New Zealanders up and giving them greater economic security. We are investing in supporting businesses to grow jobs and wages which will make families and our economy stronger.
”We are also prepared for what the world may throw at us and continuing to prioritise our spending and investing where it is needed most. We are keeping a lid on debt and making important investments in our future to deliver a high wage, low emissions economy that provides greater security in good times and bad. Some tough choices, however, may be required as we navigate our way through a volatile and uncertain global environment,“ Grant Robertson said.
