NZ economic growth slows
Wednesday 27 Jun 2018NZ economic growth slows in first quarter as construction activity weakens - New Zealand's economic growth eased slightly in line with expectations in the first quarter as a fall in construction activity was offset by growth in the services industries. The primary industries regained some ground.
Gross domestic product expanded 0.5 percent in the three months to March 31 versus a revised 0.6 percent expansion in the fourth quarter and was 2.7 percent higher on the year, Statistics New Zealand said. The result was in line with economist expectations in a Bloomberg poll however it undershot the central bank’s forecast for 0.7 percent quarterly growth.
One of the main drags on quarterly growth was construction output, which fell 1 percent with all construction sub-industries showing weaker growth. On the year, however, the sector was up 2.4 percent.
The primary industries, meanwhile, showed signs of recovery after falling sharply in the December quarter.
Overall activity in the primary industries, which also includes forestry and logging and mining, rose 0.6 percent on quarter after falling 2.6 percent in the prior quarter. On the year, activity in the sector was down 1.8 percent. The primary industries represent about 5 percent of GDP. On an expenditure measure, GDP expanded 0.3 percent in the March quarter and grew 3.2 percent on the year.
The size of New Zealand’s economy in current prices was $285 billion, Stats NZ said.
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