Economy posts solid growth in first half of 2012

Gross domestic product data issued this morning confirmed the economy posted solid and broad-based growth in the first half of 2012, despite ongoing challenges in many parts of the world, Finance Minister Bill English says.

GDP grew 0.6 per cent in the three months to 30 June. This took annual growth to 2.6 per cent – the highest rate since 2007, before the domestic recession and the Global Financial Crisis.

In the first six months of 2012, the economy grew 1.6 per cent, which compares favourably with the rest of the developed world.

“New Zealand’s economy continues to perform better than those of most other developed countries, despite uncertainties in Europe, the United States and suggestions that growth in China may come off its recent highs,” Mr English says.

“From the Government’s perspective, we cannot influence these external events, which are having an impact on New Zealand.

“In the current environment, it’s important that we continue with our wide-ranging economic programme to increase New Zealand’s long-term competitiveness and give our businesses the best chance of succeeding.

“We are focused on growth that is sustainable and built on higher savings and earnings, rather than consumption and debt. Households and businesses are recognising this need for change and are changing their behaviour.”

GDP growth in the June quarter was based on a number of sectors, including agriculture, construction, transport and manufacturing.

“We are making good progress and the outlook is for further moderate growth over the next three or four years,” Mr English says.