New Zealand's Economy Grew Slightly More than Expected in Q4

New Zealand's GDP rose a seasonally adjusted 0.8 percent in the last quarter of 2014, following a revised 0.9 percent expansion in the previous quarter, boosted by spending from international tourists.

Retail and accommodation increased 2.3 percent in the December 2014 quarter, buoyed by a 15 percent increase in international tourist spending and a 1.8 percent rise in retail trade. It is the largest growth in the sectors since September of 2011 when New Zealand hosted the Rugby World Cup.

Services industries went up 0.8 percent (0.3 percent in Q3). The most notable gains were in rental, hiring, and real estate services (+1.2 percent), due to increases in the number of house sales that drove the real estate services up more than 20 percent; and in financial and insurance services (+ 1.1 percent), mostly due to increased banking activity

The goods producing industries slowed 0.3 percent (0.6 percent in Q3) in the fourth quarter of 2014. Manufacturing activity increased 1.0 percent, driven by petroleum manufacturing. Construction sector grew 0.3 percent, improving from previous quarter’s fall. Electricity, gas, water, and waste services decreased 2.5 percent, due to lower hydroelectricity generation.

Primary industries fell 0.3 percent, after a 4.5 percent rise in the third quarter. Agriculture were up 0.1 percent, slowing from strong growth in previous quarter and mining dropped 1.5 percent, after a 5.9 rise in the previous quarter.  

Year-on-year, the economy grew 3.5 percent, the highest level since the fourth quarter of 2007.

New Zealand

Statistics New Zealand | Carolina Cunha |
3/19/2015 9:39:09 AM