N.Z. National Income Up 7.4 per cent

Press, Volume CII, Issue 30231, 9 September 1963, Page 6

N.Z. National Income Up 7.4 per cent

New Zealand’s national income in the year to March 31 last rose 7.4 per cent to an estimated £ 1240 m, compared with £ 1155 m in 1961-62, according to the Government Statistician (Mr J. V. T. Baker). The gross national product —the current market value of all goods and services produced during the year—rose by 6.8 per cent to £ 1444 m from £ 1352 m the year before. The rate of growth in 1962-

63 was approximately twice that in the year before. Mr Baker said it should be noted that the substantial advance in the national income and .product was achieved against the background of a marked improvement in the balance of payments. The 1961-62 current deficit of £s2m was halved to a £27m deficit in the latest year. The increase in export prices was a major factor in the improvement, but the substitution of imports by domestic production also contributed to an important degree. Salary and wage payments made up the largest single item of the national income. These rose 6.6 per cent to £73om from £6Bsm the year before. Company profits before distribution increased from £l4om to ■£ 149 m—a 6.4 per cent rise. Profits of public authority trading undertakings rose 8 per cent from £som to £s4m. Reduced taxation, coupled with the fact that personal expenditure on consumer goods and services had advanced less than production and incomes, had resulted in a substantial increase in private savings, Mr Baker said.