Statistics New Zealand (Stats NZ) has released national accounts data for the June quarter, which revealed 0.7% growth in real GDP over the quarter and 3.5% growth over the year – the highest rate of growth since the year to September 2007.
The growth was largely driven by the services sector:
“Services make up about two-thirds of the economy and all 11 services industries increased this quarter,” national accounts manager Gary Dunnet said. “The biggest increases were in industries that include advertising, employment services, and software development.”
Overall, services increased 1.4 percent, the highest growth since the December 2006 quarter. Business services (up 4.2 percent) was the main driver, although accommodation and food services increased 3.0 percent. These increases were partly offset by a 3.1 percent decrease in primary industries, where agriculture, forestry, and mining all fell.
The below charts track the real growth in per capita GDP and national disposable income in New Zealand:
Real GDP per capita rising by 2.4% in the year to June – the highest rate of annual growth since December 2007. More importantly, national disposable income per capita rose by 6.6% over the year, which is the fastest rate of growth on record (since at least 1991), though some of this will retrace with the term of trade.
It looks like boom time across the pond, which helps to explain why so many Kiwis are flooding home from Australia.