Statistics New Zealand has released national accounts figures for the March quarter of 2018, with Gross domestic product (GDP) rising by 0.6% over the quarter to be up 2.7% year-on-year. GDP per capita rose by 0.1% over the March quarter and rose by 0.9% year-on-year – the lowest annual GDP per capita growth since 2011.
As shown below, mining, manufacturing and construction drove the GDP growth:
Household consumption expenditure continues to ease:
Real gross national disposable income (RGNDI) – which measures the real purchasing power of New Zealand’s disposable income – rose by 0.6% in the March quarter, driven by a 1% rise in the terms-of-trade, and was up 2.5% year-on-year:
A population increase of 0.5% over the March quarter meant RGNDI per capita rose just 0.1% over the quarter and by 0.6% year-on-year.
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 growth is among the fastest in the world at 1.9%, 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.