New Zealand's economic decline showed signs of slowing in the September quarter, as the gross domestic product (GDP) fell by 1%. This figure, reported by Statistics New Zealand, was a larger decrease than the anticipated 0.4% drop but represented an improvement from the previously reported 1.1% decline in the June quarter, which had been adjusted downwards from a forecasted 0.2% decrease. Although the growth rate for June was revised downward, Stats NZ indicated that the overall level of economic activity has actually been revised upward over a more extended period.
To shed more light on these changes, Michael Gordon, a senior economist with Westpac, commented on the unusual magnitude of this revision. "Given that these revisions coincide with a period of very strong migration-led population growth, the new figures still don't tell a very flattering picture about the nation's potential growth or labor productivity, but it's not as dire as it was before," he noted. The significant drop in the manufacturing sector was the principal factor contributing to the GDP's decline in the September quarter, according to Stats NZ.
Other sectors, like business services and construction, also encountered substantial downturns. In contrast, industries such as rental, hiring, real estate services, and agriculture experienced growth. Jason Attewell, the macroeconomic growth spokesperson for Stats NZ, stated, "The rise in agriculture this quarter was driven by dairy farming.
We also saw a rise in exports of milk powder, butter, and cheese." This mixed economic performance highlights the ongoing challenges and opportunities within New Zealand's economy, as it grapples with both sector downturns and pockets of growth..