Statistics reveal business growth

Press, 14 September 1988, Page 39

Statistics reveal business growth

PA Wellington Statistics relating to the expenditure on the gross domestic product show the economy grew by 1.9 per cent for the year ended March, 1987. This compared with a 1 per cent rise in 1986, revised from 0.9 per cent, the Department of Statistics said yesterday. The G.D.P. rose 1.3 per cent last year in constant price terms, a decrease on last year’s result of 1.6 per cent. This was lower still on the 1985 figure of 5.6 per cent. The 1985 figure was an increase of 5.4 per cent. The G.D.P. expenditure statistics show how the goods and services produced each year are consumed, accumulated or exported and are being offered for the second time only. Although the G.D.P. and its expenditure were alternative measures of the economy, they were basically the same Private final consumption expenditure, which is household outlay on consumer goods, rose by 3 per cent in 1987 (0.5 per cent) and included increases of 4.4 per cent on food and 5.9 per cent on clothing. There was a 7.6 per cent decline in new and used vehicle buying, the department said. General Government expenditure was up 1.5 per cent, mainly because of increases in health services, up 4.1 per cent, and defence, up 5.7 per cent. Local government expenses dropped 2.2 per cent. An increase in stocks of $649 million ($123 million) was the result of a significant build up by forestry and distribution industries, partially offset by moderate reductions in stocks held by manufacturers. Exports grew 3.3 per cent and imports rose 2.2 per cent with the main areas in exporting being food, wool, skins and hides. The import increase stems from a 19.9 per cent rise in the imports of services offset by a fall in merchandise imports, mainly plant machinery and mineral fuels. Over all, expenditure on G.D.P. was $35 billion ($34.4 billion) for the year ended March, 1987, the department said.