NZ GDP growth slowest since 2013

Statistics New Zealand has released national accounts figures for the June quarter of 2019, with Gross domestic product (GDP) rising by 0.5% over the quarter. Between the June quarter of 2018 and the latest June quarter GDP rose 2.1%, which was the slowest rate since December 2013.

As shown below, services drove the GDP growth, with goods producing industries going backwards:

Household consumption expenditure continues to remain soft:

Real GDP per capita continues to ease, growing by just 0.2% over the quarter and just 0.8% over the year – the lowest annual per capita growth since 2011:

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, driven by a 1.6% rise in the terms-of-trade, and was up 2.2% year-on-year:

However, a population increase of 0.4% over the June quarter meant RGNDI per capita rose 0.5% over the quarter and by 0.6% year-on-year.

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

However, it should be noted that New Zealand’s population growth is among the fastest in the world at 1.6%, 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.

Leith van Onselen

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