G.D.P. down by 2.9 p.c.

Press, 16 June 1979, Page 7

G.D.P. down by 2.9 p.c.

PA Wellington New Zealand’s gross domestic product fell by 2.9 per cent during 1977'78 as a reult of a fall in metal manufacturing, wood processing, and agricultural production, according to the Statistics Department. The contribution of agriculture to the gross domestic product, a measure of the value added bv all economic activity in New' Zealand, fell bv 11.3 per cent between 1976-77 and 1977-78. The department said that most manufacturing sectors had shown small increases w'hich were generally less than the inflation rate. The share of the economy held by profits on private enterprises had

fallen by 2.5 per cent, particularly in agriculture and manufacturing. Government spending had increased by 18.5 per cent and local-government spending by 14.7 per cent. Private spending had increased by only 7.8 per cent. Wages in the three sectors had risen by similar ratios to one another. Investment, particularly in the private sector, had fallen during the year by about 10.1 per cent over all with a drop in investment in plant, machinery. and equipment by manufacturers of 23 per cent. The gross domestic product for 1977-78 was provisionally estimated at $13,738M compared with 812.679 M for the 1976-77 year.