GDP has risen 1.7% in the June quarter, with the reopening of the border a factor in the lift.
It comes after last quarter's fall of 0.2% and eases fears of a recession.
The service industries, which make up about two thirds of the economy, were the main contributor to the increase, up 2.7%.
1News’ Katie Bradford explains what’s behind the 1.7% growth in the June quarter. (Source: 1News)
"The reopening of borders, easing of both domestic and international travel restrictions, and fewer domestic restrictions under the Orange traffic light setting supported growth in industries that had been most affected by the Covid-19 response measures," national accounts – industry and production senior manager Ruvani Ratnayake said.
"In the June 2022 quarter, households and international visitors spent more on transport, accommodation, eating out, and sports and recreational activities."
However household spending is down as Kiwis tighten their belts. (Source: 1News)
NZ moved from Red to Orange in the traffic light system at the start of the quarter. This week, the system was dropped completely.
Overall household spending declined by 3.2%, Ratnayake said, driven by lower spending on goods such as used motor vehicles and audio-visual equipment, with a similar fall seen in retail trade activity.
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