1. JACQUI DEAN (National—Waitaki) Link to this
to the Minister of Finance
What reports has he received on the economy?
Hon BILL ENGLISH (Minister of Finance) Link to this
Today the latest release of GDP data shows that the economy grew by 0.2 percent in the December quarter and by 1.5 percent in the last calendar year. This largely confirms what other indicators are telling us: that the economy was growing very moderately through the second half of last year, as New Zealanders increased their savings and paid down debt. However, it was the highest annual growth in the last 2 years, and the economy has expanded in six of the past seven quarters.
In the 2008 calendar year the economy contracted by 0.2 percent, and in 2009 it contracted by 2.1 percent. However, most commentators and forecasters agree that growth is likely to accelerate over the next couple of years, driven by a combination of lower interest rates than expected, strong commodity prices, continued Asian growth for our export markets, quake rebuilding, and the Rugby World Cup. They are forecasting growth reaching 4 percent or 5 percent over 2012 and 2013.