G.D.P. up 2.7 p.c.

Press, 23 October 1984, Page 38

G.D.P. up 2.7 p.c.

By

MICHAEL HANNAH

in Wellington

Hie gross domestic product, which measures the value, in current prices, of all goods and services produced in the domestic economy, rose from 132,240 million to $34,435M in the 12 months to March. Allowing for the changing value of money between the two years, the estimated real GDP showed an increase of 2.7 per cent The official figures show a big difference in increases in New Zealand’s production, producers’ profits and the national wages bill in the year to March, 1984. Provisional estimates by the: Statistics Department show that the gross domestic product rose 6.8 per cent between March, 1983, and March, 1984. Producers’ operating surBluses rose 11.9 per cent in le same period, while total compensation of employees increased just 1.6 per cent. The department did not include similar allowances foi; figures relating to profits and wages, but pointed out that dollar values in these areas were affected by different factors. The national’ accounts showed that producers’ operating surpluses rose from $10,146M to $11,351M. This was approximately equal to producers’ net profits, before the

deduction of interest paid or the addition of interest received, the department said. Total compensation of employees increased from J17.276M to |17,556M, and this figure included wages and salaries, superannuation contributions, Accident Compensation contributions and other compensations paid by employers to workers. The figures also show that subsidies paid by central and local Government dropped 4.8 per cent in the 1983-84 year, from $769M to $732M. The contribution of supplementary minimum prices to farmers was S3IOM compared with $392M in 1982/83. External transactions showed a substantial drop in the deficit on the balance of trade in goods and services, from III3BM to S22IM. The value of exports rose 17.9 per cent from $9116M to $10,752M, and imports rose 7 per cent, from to $10,973M. These figures did not include the oil rig, the Benreoch, Sedco, and Penrod, because of the relatively short time they

operated in New Zealand, the department said. The deficit on current account fell from SIBBOM to 81236 M largely because of a significant rise in net property and entrepreneurial payments to the rest of the world. These rose 31.2 per cent, from an estimated SB6OM to SII2BM, while net current transfers from the rest of the world dropped from SIIBM to SII3M. Stocks in the economy rose by $722M, which was 29.1 per cent less than the previous year’s increase of ?10I8M. Total gross fixed capital formation increased by 7.1 per cent, from $7425M to J7952M. The central Government made a major contribution to this rise as its gross fixed capital formation went up by 14.4 per cent, from $2058M to $2354M.

Final consumption expenditure increased by 6.3 per cent, with that by the private sector increasing 7.2 per cent, from $19,058M in 1982/83, to $20,421M in 1983/84, and that by central and local Government consumption increasing by 3.7 per cent