New Zealand’s economy has shown strong signs of recovery, posting a 1.1 per cent growth in the September quarter. This follows a revised 0.1 per cent contraction in the June quarter, according to fresh figures released by Stats NZ on Thursday. The latest result effectively cancels out the losses experienced earlier in the year, indicating a positive shift in economic momentum.
The growth was primarily driven by strong performances in the manufacturing and business services sectors. Exports also contributed significantly, increasing by 3.3 per cent, fuelled by notable growth in the tourism and dairy industries. The New Zealand economy has experienced volatility over the past year, with considerable fluctuations in quarterly growth rates.
Despite the recent positive result, the overall economic growth for the past year remains negative at -0.5 per cent, reflecting the ongoing challenges in recovering from the pandemic’s impact. The quarterly result was welcomed by Prime Minister Chris Luxon, who has emphasised the government’s focus on driving economic expansion, stating that “going for growth is without a doubt priority number one”.
Previous economic difficulties were partly attributed to global trade uncertainties, particularly stemming from the trade policies of former US President Donald Trump. These factors contributed to an unstable economic environment, highlighting the interconnectedness of the New Zealand economy with global events.
