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Govt hails economic growth

NZ Newswire logoNZ Newswire 15/09/2016

The government is giving itself a pat on the back after the economy grew rapidly in the June quarter, but Labour reckons the true picture is not being painted by the figures.

Gross domestic product grew by 0.9 per cent in the latest quarter taking annual growth to 3.6 per cent - the third-best growth rate in the OECD.

"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," said Finance Minister Bill English.

The growth rate missed the 1.1 per cent predicted in a Reuters poll of economists, but was ahead of the Reserve Bank's pick of 0.8 per cent.

Mr English said the annual rate of growth far exceeded the OECD average for the year of 1.6 per cent and outstripped that of Australia, the United Kingdom, the United States and Japan.

But Labour's Grant Robertson says the figures are misleading as real disposable income per person fell due to record population increases.

He says per capita GDP for the year was just 0.7 per cent.

"On a per person basis our economy is barely moving," he said.

The GDP result means the NZ economy is now worth more than $250 billion.


India - 7.1 per cent

China - 6.7 per cent

Ireland - 4.1 per cent

Iceland - 3.7 per cent

Slovakia - 3.7 per cent

Australia - 3.3 per cent

UK - 2.2 per cent

Eurozone - 1.6 per cent

USA - 1.2 per cent

Japan - 0.8 per cent

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