NZ’s consistent economic growth continues

New Zealand’s economy continues to perform consistently well with another quarter of solid growth reported today, Finance Minister Bill English says.

Statistics New Zealand today released gross domestic product figures for the December quarter showing growth of 0.8 per cent. This took annual growth – from the December quarter 2013 to the December quarter 2014 – to 3.5 per cent, the highest annual rate since Sept 2007. Average annual growth to December 2014 was 3.3 per cent.

Growth was across the board, with retail trade and accommodation, manufacturing, and rental, hiring and real estate services all contributing strongly in the quarter.

“The good news about New Zealand’s economic growth is that it has proved to be consistent and sustainable, which is contributing to confidence about hiring and investment,” Mr English says.

“Where this growth really makes a difference to New Zealanders and their families is in their household budgets. They are earning more, saving more and borrowing less.

“In 2014 we saw 80,000 new jobs created, a record high participation rate in the labour force of 69.7 per cent, and average weekly wages growing at 2.5 per cent compared with inflation of 0.8 per cent.

“This is helping New Zealand families, particularly those with mortgages who are experiencing a long period of stable low interest rates, to get ahead. The Government’s leadership and direction are helping the economy to grow, and that growth is helping New Zealanders.

“However, there are many risks around and no-one should take this consistent growth for granted. The effects of drought and lower dairy prices are likely to have an impact this year, and international risks - including declining growth prospects for some of our main trading partners - are ever-present.

New Zealand continues to be one of the higher-performing countries in the OECD.  New Zealand’s 3.5 per cent economic growth in 2014 compares with  growth of 2.7 per cent in the UK,  2.5 per cent in Australia, 2.4 per cent in the United States, 0.9 per cent in the Euro area and  -0.7 per cent in Japan over the same period.