Economy grows 1.7% - Stats NZ

The economy grew 1.7% in the June quarter, higher than most forecasts.  That follows a 0.2% fall in the preceding quarter.

Stats NZ said the services sector, which made up about two thirds of the economy, was the main contributor to the increase, rising 2.7 percent.

It said this was helped by the reopening of borders to international travel, and fewer domestic restrictions under the Orange traffic light setting that came into effect at the start of the quarter.

It was not all positive news.  

Overall household spending declined by 3.2 percent, driven by lower spending on goods such as used motor vehicles and audio-visual equipment, with a similar fall seen in retail trade activity.

However more was spent on transport, accommodation, eating out, and sports and recreational activities.

Stats NZ's industry and production senior manager Ruvani Ratnayake was at pains to point out the impact of the pandemic on this.

“The COVID-19 pandemic has led to significant changes to typical seasonal patterns of economic activity” Ratnayake said. 

“International visitor expenditure grew in the June 2022 quarter as border restrictions eased. This was in contrast with the strong falls that were observed in pre-pandemic June quarters, following the peak summer tourist season.”

In a further breakdown, Stats NZ says production by goods producing industries fell 3.8% while primary industries rose 0.2 percent.

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