N.Z. economy up 1.8% in September quarter

Press, 4 February 1987, Page 40

N.Z. economy up 1.8% in September quarter

PA Wellington The New Zealand economy grew by 1.8 per cent in the September quarter compared with the June quarter, the Statistics Department said yesterday. This rise in seasonally adjusted real gross dometic product is smaller than the 3.4 per cent rise in the June quarter.

The annual increase for the year ending in September, 1986, was 1.3 per cent, compared with a 1 per cent rise for the year to June and a 1.6 per cent rise for the year ended in March.

The pattern of economic activity in the three quarters to September, 1986, was influenced by one-off events, the Statistics Department said.

Both March and June quarters’ indexes were strongly influenced by the industrial stoppages at meat works during March. In the September, 1986, quarter, economic activity was influenced by the impending introduction of the Goods and Services Tax in October. This effect was most noticable in the trade, restaurants and hotel industry group where activity increased by 7.5 per cent over the June quarter.

The following seasonally adjusted real gross domestic product percentage changes are for the June to September, 1986, quarter; the June to Sep-

tember, 1985, quarter; and the September. 1985, to September, 1986, year: Agriculture -4.0, 2.9, 7.4. Fishing, hunting, forestry, mining -2.7, 1.4, 13.1. Manufacturing -0.8, -0.8, - 4.9. Electricity, gas, water 3.4, 8.7, 4.6. Construction 6.8, 0.9, 3.6. Trade, restaurants, hotels 7.5, 9.6, 1.7. O w n e r occupied dwellings 0.9, 1.7, 1.8. Transport, communications, business and personal services etc. 0.0, 3.0, 4.4. General government services 0.9, 1.9, - 0.5. Gross Domestic Pro-

duct 1.8, 3.3, 1.3. The Minister of Finance, Mr Douglas, said the GDP figure for the September quarter of last year had been influenced by GST, but demonstrated continuing resilience in the economy.

The introduction of GST was also likely to affect the December quarter figures with a “broadly flatter” pattern of economic activity emerging. “Over all it appears the economy is continuing to show resilience at a time of fundamental structural

changes,” he said in a statement.

Mr Douglas also said that both the June and September quarters had been significantly affected by industrial action, such as the Kawerau dispute.

However, there had been little or no change in central government services compared with other sectors.

“This is clear indication that the size of State activity is being successfully controlled.”