NZ GDP lifts, but per capita weak

By Leith van Onselen

Statistics New Zealand has released national accounts figures for the June quarter of 2018, with Gross domestic product (GDP) rising by 1.0% over the quarter to be up 2.7% year-on-year. GDP per capita rose by 0.5% in the June quarter and by a soggy 0.7% year-on-year – the equal lowest per capita growth since 2011.

The result beat analysts expectations of a 0.8% increase in GDP over the quarter.

The 1.0% growth in overall GDP was broad-based, with 15 out of 16 industries growing:

Real gross national disposable income (RGNDI) – which measures the real purchasing power of New Zealand’s disposable income – rose by 0.8% in the June quarter and by 3.1% year-on-year:

Whereas RGNDI per capita was up 0.4% in the June quarter and by 1.1% year-on-year. The stronger growth in RGNDI compared with GDP was driven by a 0.6% increase in New Zealand’s terms-of-trade in the June quarter to a near all-time high as export prices rose more than import prices:

Statistics New Zealand points out that New Zealand’s economy is growing above the OECD average:

However, it should be noted that New Zealand’s population is growth is among the fastest in the world at close to 2%, owing to the nation’s high immigration program:

Thus, New Zealand’s growth figures are being heavily inflated, and per capita growth is soft, much like Australia.

[email protected]

Comments are hidden for Membership Subscribers only.