GDP grows 2% in September quarter - Stats NZ

New Zealand's gross domestic product (GDP) is up 2% for the September quarter, and up 2.7% for the year ending in September, according to the latest figures from Stats NZ.

It comes after Finance Minister Grant Robertson and Reserve Bank Governor Adrian Orr have both said a recession is likely in the coming months.

And the size of the economy in current prices is $375 billion, Stats NZ said.

Driving the rise this quarter were service industries (up 2%) and goods producing industries (up 2.4%).

Growth was fuelled by an 9.7% increase in transport, postal, and warehousing.

Somewhat offsetting these increases were falls in central government expenditure and household consumption.

Expenditure on GDP rose 2% while GDP per capita rose 1.9%.

GDP in the June quarter has been revised up to 1.9%, from 1.7%.

Today's announcement shows a significantly larger rise than expected by forecasters. In their release, Stats NZ notes the impact of Covid-19 on the figures, pointing out that "the September 2022 quarter began with New Zealand in the Orange traffic light setting".

"On 13 September 2022, the Covid-19 protection framework ceased, while isolating for seven days remained a requirement for anyone who tested positive," the agency said, also pointing to the easing of border restrictions.

Responding to the announcement, Finance Minister Grant Robertson said: "This is another solid result and shows the strength of the economy despite a challenging global situation marked by high inflation and the effects of the Ukraine war and ongoing disruptions from the pandemic."

He said the growth reflects the Government's "balanced approach", and that "we are in a stronger position than before the pandemic".

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"The economy's resilience stands us in good stead in a volatile economic environment with a period of high inflation to be followed by forecasts of a shallow recession.

"We will continue to focus on supporting New Zealanders with cost of living pressures while carefully and responsibly managing the Government's finances that the Treasury noted is helping reduce demand pressures," Robertson said.