New Zealand GDP Growth Slows in Q1

New Zealand economy expanded a seasonally adjusted 0.2 percent in the first quarter of 2015, following a 0.8 percent growth in the previous quarter, as primary industries showed the largest contraction since September 2010.

In the March 2015 quarter, primary industries (agriculture, forestry, and mining) shrank 2.9 percent, following a 0.3 percent decline in the previous quarter. Mining was down 7.8 percent, as extraction and exploration of oil and gas decreased severely due to lower international prices in the sector. Agriculture shrank 2.3 percent driven by lower production of milk. Forestry production and exports of forestry products were also down.

A 2.4 percent increase in retail trade and accommodation helped to offset the decrease in primary industries. International tourist spending increased 2.3 percent this quarter, and there was an increase in arts and recreation (including sport, recreation, and gambling services), and international air travel. Also, business services grew 2.1 percent, due to scientific, architectural and engineering, and veterinary services.

On the expenditure measure of GDP, household spending increased 0.7 percent, while investment fell 1.9 percent. An increase in construction investment was offset by large decreases in both machinery and equipment investment. Exports of goods and services rose 1.5 percent, and imports were up 1.0 percent.

Year-on-year, the economy grew 2.6 percent, compared to a 3.5 expansion in the fourth quarter. 

New Zealand GDP Growth Slows in Q1

Statistics New Zealand |
6/18/2015 12:54:40 AM