In a positive turn of events, New Zealand’s gross domestic product (GDP) rebounded with a growth of 0.9% in the June 2023 quarter, as revealed by the latest quarterly figures from Stats NZ. This follows a flat March 2023 quarter, indicating a resurgence in economic activity.
Key Points:
- Business Services Propel Growth: The primary driver of economic growth in this quarter was the business services sector, particularly attributed to computer system design. This industry played a pivotal role in contributing to the overall expansion.
- Contributing Industries: Several other sectors played a role in the growth, including public administration, safety, and defense; rental, hiring, and real estate services; and electricity, gas, water, and waste. Notably, transport equipment and machinery manufacturing experienced heightened activity, reversing a trend of five consecutive quarters of decline.
- Recovery from Cyclone Impact: Industries like education and transport, postal, and warehousing rebounded in the June 2023 quarter following the impacts of Cyclone Gabrielle. Agriculture, forestry, and fishing, which were adversely affected by extreme weather events, showed a decline in both the March and June quarters.
- Expenditure Measure and Exports: The expenditure measure of GDP recorded a notable increase of 1.3% in the June 2023 quarter. Exports, a key component, surged by 5.0%, primarily led by higher exports of dairy, forestry, and meat products.
- Household Spending and Investment: Household spending experienced a positive trajectory, growing by 0.4% in the quarter. Increased spending on durables, including motor vehicles and audio-visual equipment, contributed to this growth. Furthermore, investments played a significant role, resulting in a decrease in stock levels, particularly affecting motor vehicle and forestry inventories.
This rebound in economic indicators signifies resilience and adaptability in New Zealand’s economy, showcasing recovery from previous challenges and a positive outlook for the upcoming quarters.
https://www.stats.govt.nz/news/gdp-increases-0-9-percent-in-the-june-2023-quarter/