The economy is in stronger than expected shape, with official figures showing GDP growing at an annual rate of 3.2% says NZCTU Economist Craig Renney.
“The June quarter result is an encouraging sign of the underlying strength of the economy,” said Renney.
“The data also confirms that the economy was not in a recession, showing flat growth instead. When taken together with strong employment data, strong wage growth, and falling inflation, this data does not support those who are seeking to paint a picture of a struggling economy. They are wrong.”
“The data shows that the economy is now 9.2% larger than it was at the start of COVID-19. Quarterly growth was stronger than had been forecast by ANZ, ASB, Westpac, RBNZ, and the Treasury forecasts just last week. Growth was widespread, with 14 of the 16 sectors of the economy showing annual output growth. Exports were 13.1% higher than in June last year, again showing the New Zealand economy competing successfully on the world stage.
“This data is welcome news. The New Zealand economy is growing even with strong population growth. GDP per capita rose 2.2% last year. International experts such as Standard & Poor have said that New Zealand has ‘excellent institutions, a wealthy economy and moderate public indebtedness’. We can now add that it also has a growing economy, and no recession despite huge international economic challenges.
“We are in good shape and while there may still be dark clouds ahead, the underlying picture is one of an economy that has weathered the post-COVID environment better than many expected.”