Economy shows slight growth

The New Zealand economy has edged out of the recession experienced in the second half of last year after gross domestic product (GDP) rose 0.2 per cent in the March quarter.

It follows decreases of 0.1 and 0.3 per cent in the two previous quarters respectively, according to figures from Stats NZ.

Ruvani Ratnayake, national accounts industry and production senior manager, says: “There were a range of results at industry level, with eight of the 16 industries rising this quarter.”

Rises were seen in rental, hiring and real estate services, up 0.9 per cent, and electricity generation drove a 2.9 per cent increase in electricity, gas, water and waste services.

Falls were seen in a number of industries including construction, business services, and manufacturing.

GDP per capita fell by 0.3 per cent in the March quarter from the December quarter, the sixth consecutive drop, and real gross national disposable income increased by 0.9 per cent. 

On an annual basis, GDP per capita was down by 2.4 per cent.

Imports of goods and services were up 6.1 per cent – a rise in imports results in a downwards contribution to expenditure on GDP.

However, the value of motor cars imported in the March 2023 quarter was $1.3 billion, down 7.3 per cent from $1.41b in the previous quarter.