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New Zealand economy surging
New Zealands economy surged two percent for the June quarter, Statistics New Zealand (SNZ) said Friday. Gross domestic product (GDP) was expected to rise by 1.4 percent for the quarter.
The last quarters to record a similar jump in growth were September 1999 and June 1997. The strong rate of growth in the June quarter -- contributing to a 2.3 percent increase for the year to June -- comes after a rise in GDP of just 0.3 percent for the three months to March. The annual rate of growth, better than the expected 2.0 percent, is down on the previous June year's 5.3 percent rise in GDP.
"Following two quarterly declines, internal demand rose this quarter largely due to an increase in business investment," SNZ said. "This recovery, along with a rise in exports, resulted in the strong growth in GDP this quarter.
"Business investment increased across most asset types with, most notably, spending on plant machinery and equipment jumping 28.4 percent following a fall last quarter.
"This increased demand was partly met by a run down in inventories. Investment in non-residential and other construction also recorded increases following falls last quarter," SNZ said.
The New Zealand dollar got an immediate lift from the data. It had been languishing just below 40 US cents but rose to 40.15 cents minutes after the release.
