1. NIKKI KAYE (National—Auckland Central) Link to this
to the Minister of Finance
What recent reports has he received on the economy?
Hon STEVEN JOYCE (Associate Minister of Finance) Link to this
Gross domestic product increased by 1 percent in the first 6 months of 2011, despite that lower than expected growth in the June quarter. This took annual growth to 1.5 percent. Supported by a strong agricultural sector, this is above Treasury’s Budget forecast of 0.5 percent growth for the first 6 months of this year. There was also further positive news last week, with Fonterra announcing a record payout for 2010-11 of $8.25 a kilogram. This will inject about $10.6 billion into the economy.
They showed we are making progress, through the Government’s clear plan to reduce New Zealand’s longstanding reliance on foreign debt and build faster growth around savings and exports. As at 30 June, New Zealand’s net international liabilities stood at $140 billion, or 70 percent of GDP, which is the lowest level since 2004. Although this is still quite high, it is certainly better than the peak of almost 86 percent of GDP 2 years ago. The latest figures incorporate some revisions from Statistics New Zealand to include better estimates of New Zealand assets held abroad.