GDP growth reflects a strong economy

GDP growth for the September quarter has exceeded expectations, showing the economy is in good shape, Finance Minister Grant Robertson says.

Stats NZ data today showed the economy grew 0.7% over the quarter, and 2.7% over the year.

There was strength across the economy, with services industries, manufacturing, construction and primary industries all growing during the quarter. GDP per capita also rose 0.4% in the September quarter and 1% over the year.

“This shows the New Zealand economy is in good shape amid international headwinds like the US-China trade war, the uncertainty around Brexit and geopolitical tensions.

New Zealand is growing faster than the countries we compare ourselves to, including Australia, the UK, Canada, the EU, Japan, the OECD average and the US.

New data also shows the economy has been stronger since the election. Stats NZ carries out a regular revision in each September quarter. Since the election, the economy is about $6 billion larger than previously thought, at $307 billion.

“Alongside the lowest unemployment in a decade, the highest wage growth in a decade and increasing signs of consumer and business confidence this year, the GDP data shows the New Zealand economy enters 2020 in good shape.”