Booming tourist numbers have helped the New Zealand economy grow faster than economists were expecting.
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WELLINGTON, New Zealand-New Zealand’s economy continued to pick up speed in the third quarter, buoyed by growth in the services sector that outweighed weakness in agriculture and construction.
Exports of services reached 5.2 billion NZ dollars (3.51 billion US dollars) in the September quarter, driven by an increase in travel services exports, which measure overseas visitor spending in New Zealand. At the same time, the nation’s GDP growth is expected to be around 2.5 percent in the second quarter compared to prior estimates of 2.75 percent. Retail trade and accommodation grew 1.6 percent, while transport, postal, and warehousing expanded 2.6 percent. Today’s release has no obvious implications for tomorrow’s September quarter GDP report.
Third-quarter growth was led by increases in manufacturing and services industries, Statistics New Zealand said.
While the deficit is seen widening over next year as the low dairy prices have full impact, it is likely to remain well-contained compared to the last economic cycles.
Annual growth slowed from 2.4 percent in the second quarter and is the weakest since late 2013.
Expenditure expanded 3.5 percent on an annual basis, as residential construction grew 6.2 percent, and exports climbed 9.5 percent in a period where the kiwi dollar depreciated against most of its trading partners.
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Earlier this week the New Zealand Treasury lowered its growth forecast for the year to March 2016 to 2.1%, down from the 3.1% it forecast in the May Budget.
