New Zealand is out of a technical recession after the economy grew slightly, new figures show.
Stats NZ revealed today that Gross Domestic Product (GDP) rose 0.2 percent in the March 2024 quarter.
It comes after the economy shrank in the last two quarters, moving the country into a technical recession. GPD fell 0.1 percent in the December 2023 quarter and 0.3 percent in the June quarter.
Most economists and major banks predicted a small rise in GDP, with ANZ and the Reserve Bank right on the money.
"There were a range of results at industry level, with 8 of the 16 industries rising this quarter," Stats NZ national accounts industry and production senior manager Ruvani Ratnayake said.
Rises were seen in rental, hiring and real estate services, up 0.9 percent. Electricity generation drove a 2.9 percent increase in electricity, gas, water and waste services. Falls were seen in several industries including construction, business services, and manufacturing.
"While manufacturing fell overall, food and beverage manufacturing was up. This was reflected in a rise of dairy product exports, such as milk powder," Ratnayake said.
GDP per capita, which shows GDP divided by total population, decreased by 0.3 percent in the March 2024 quarter. This was the sixth consecutive quarterly fall. On an annual basis, GDP per capita fell 2.4 percent.
The expenditure measure of GDP grew 0.1 percent, driven by household and overseas visitor spending in New Zealand, which rose 0.8 percent.
Downward contributions to the expenditure measure were made by a 6.1 percent rise in imports and a 1.3 percent fall in gross fixed capital formation.
Newshub.
