The third highest growth rate in the OECD shows the Government’s management of the economy is delivering more jobs and opportunities for New Zealanders, Finance Minister Bill English says.
Statistics New Zealand reported Gross Domestic Product grew by 0.9 per cent in the three months to 30 June 2016. This took annual growth to 3.6 per cent – putting New Zealand’s growth rate in the top three among developed economies.
“Despite the tough period the dairy industry has been through, we are in the unusual position of enjoying solid growth, rising employment and real wages at the same time as very low inflation.
New Zealand’s annual growth rate of 3.6 per cent is more than double the OECD rate of 1.6 per cent and compares with 3.3 per cent in Australia, 2.2 per cent in the United Kingdom, 1.2 per cent in the United States and 0.8 per cent in Japan.
The result means the New Zealand economy is now worth more than $250 billion for the first time.
Growth in the June quarter was led by construction which grew by 5.1 per cent over the quarter. Residential construction was up 10 per cent over the last year – reinforcing the fact that New Zealand is in the middle of a significant building boom.
Exports of goods increased 7.6 per cent for the quarter, the highest increase in 18 years.
But there is a but:
“While this result is solid and the outlook is relatively positive, there are many risks around and we cannot afford to take our current economic performance for granted. That is why the Government is continuing to focus on building a stronger, more resilient economy.
The Opposition and the other wailers have plenty of other buts including too many people not benefitting from the growth.
You could look at it that way but a growing economy is not a magic bullet.
New Zealand has entrenched problems of dependency which leads to and/or exacerbates poverty with all its attendant problems.
There are myriad causes for that none of which have easy or fast solutions.
But the opportunities to address not just the problems but the root causes of them are greater with a growing economy.
That New Zealand not only has one but has the third fastest in the OECD in spite of the dairy prices in the doldrums, is very good news.