New Zealand's economy increased slightly in the last quarter, with figures from Stats NZ revealing it grew 0.9%.
"Business services was the biggest driver of economic growth this quarter, largely due to computer system design," economic and environmental insights general manager Jason Attewell said.
Other industries to contribute to growth were public administration, safety, and defense; rental, hiring, and real estate services; and electricity, gas, water, and waste.
Revised figures from the previous quarter also showed New Zealand was never actually in recession. (Source: 1News)
Manufacturing activity increased this quarter after five consecutive quarters of decline.
“Following the impacts of Cyclone Gabrielle, both education and transport, postal, and warehousing grew this quarter after a decline in the March quarter. Agriculture, forestry, and fishing, which was also impacted by extreme weather events, fell in both the March and June quarters,” Attewell said.
The Finance Minister and person who wants his job spoke about the 0.9% growth in NZ’s economy. (Source: 1News)
June's GDP announcement for the January-March quarter saw New Zealand fall into a technical recession, with a 0.1% GDP fall signalling two consecutive quarters of decline, following the December quarter's 0.6% fall in GDP.
However, Stats NZ has since revised the last quarter's GDP to 0%, meaning the economy wasn't in recession.
“The New Zealand economy is doing better than expected,” Finance Minister Grant Robertson said.
“It’s continuing to grow, with the latest figures showing no recession in New Zealand earlier this year and that the Government’s actions to build a stronger and more resilient economy contributed to higher than expected growth this quarter.
“The economy expanded 0.9 percent in the June quarter. That’s double economists’ median forecasts of 0.4 percent and ahead of the Treasury’s forecast of 0.6 percent in the Pre-Election Fiscal and Economic Update."
Experts had tipped a small bounce in New Zealand's economic activity in the second quarter of 2023, with ANZ tipping expansion of 0.4%, the Reserve Bank 0.5%, and Kiwibank forecasting 0.6%.
Those predictions were based on a surge in migration, with NZ catching up for lost time during the closed borders of the Covid-19 pandemic.
Stats NZ also said annual growth was 3.2%.
ACT's David Seymour said: "New Zealand might technically be out of recession, but the reality is the next few years will be grim thanks to Labour’s appalling economic mismanagement.”
“Politicians need to be honest with New Zealanders and offer realistic policies that will revitalise our economy, not more of the same."
National’s finance spokesperson Nicola Willis said claims Labour had managed the economy well were an "insult" to New Zealanders.
“Labour is completely detached from reality and out of touch with everyday Kiwis who are struggling with the cost of living after six years of Labour’s economic mismanagement," she said.
“Anyone who heard Grant Robertson claim ‘victory’ today would be well within their rights to feel insulted and outraged.
“Labour has mismanaged and vandalised the economy on a scale unlike anything we have seen in recent history."
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