Exports and tourism fuel growth

By Phil Boeyen, ShareChat Business News Editor

Friday 30th March 2001

Latest GDP figures have confirmed that exports and tourism are the major movers for New Zealand's economic growth.

Statistics New Zealand says economic activity increases by half a percent in the December 2000 quarter to bring the year's total growth to 3.4%. The figure is down on the previous year's 3.9% annual growth.

Government statistician, Brian Pink, says while many industries experienced small increases in the latest quarter, the strongest performers were those involved in exports of primary production and inbound tourism.

"Continuing rises in dairy production and strong export demand for meat products have been the major contributors to increases in agriculture and primary production.

"Activity in agriculture rose 1.6% and production is now at the highest level recorded since the current series started in June 1987.

"Growth in short-term arrivals for the December quarter contributed to increased activity in both hotel and accommodation services, and cultural and recreational services."

Mr Pink says falls in construction and retail trade partially offset these increases, and reflected the more subdued level of internal demand.

He says construction activity was volatile last year, with the latest quarter falling 4.2% following a flat September quarter.

Retail trade value added was also down slightly this quarter, with most stores experiencing flat or declining sales. The biggest fall was in furniture and appliance retailing as consumer demand for durables fell.

Finance Minister Michael Cullen says the latest GDP figures shows the economy is on a steady and sustainable growth path.

"The results, coupled with a competitive exchange rate, are further evidence that New Zealand has enough economic momentum to sustain a temporary downturn in world demand," Mr Cullen says.

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