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New Zealand economy grows, but critics say per capita GDP falls

Xinhua, September 17, 2015 Adjust font size:

New Zealand's economy grew by 0.4 percent in the quarter to the end of June, according to official statistics out Thursday, but critics highlighted the fact that GDP was growing at a slower rate than the population.

Growth in services and primary industries supported the increase in GDP in the June quarter, with agricultural production up 3 percent due to increased meat and dairy farming, said the government's Statistics New Zealand agency.

"Despite falling milk prices, we're seeing growth in dairy production," national accounts manager Gary Dunnet said in a statement.

"But over the year, agriculture is up only a little, due to dry conditions last summer."

Food, beverage and tobacco manufacturing was also up in the June 2015 quarter, due to strong dairy product manufacturing, while mining rose by 2.5 percent, driven by oil and gas extraction.

The service industries were up 0.5 percent, driven by business services and rental, hiring and real estate services.

Domestic demand was strong, up 1.3 percent, and household spending was up 0.9 percent, while business investment was up 2.2 percent, but this was offset by falling exports and rising imports.

The size of the economy was 241 billion NZ dollars (153.59 billion U.S. dollars), up 2.4 percent from the June quarter last year.

The main opposition Labor Party said the figures showed growth per capita had declined for two quarters in a row and called for stimulus measures such as bringing forward infrastructure projects.

"This quarter GDP per capita is down by 0.03 percent, following a 0.3-percent decline the previous quarter. This is the worst six months for economic growth per capita in over four years," Labor finance spokesperson Grant Robertson said in a statement.

The Council of Trade Unions (CTU) said while GDP was up by 0.4 percent in the June quarter, the population rose by 0.5 percent.

Growth had been unevenly spread and wages had failed to keep up with what the economy and employers could afford, CTU economist Bill Rosenberg said in a statement. Endi