Positive signs are evident in Gross Domestic Product (GDP) figures released today for the last quarter of 2009, but more work is needed for a sustainable recovery that creates jobs and lifts incomes, Finance Minister Bill English says.Statistics New Zeala
Positive signs are evident in Gross Domestic Product (GDP) figures released today for the last quarter of 2009, but more work is needed for a sustainable recovery that creates jobs and lifts incomes, Finance Minister Bill English says.
Statistics New Zealand said GDP rose 0.8 percent in the December quarter, with manufacturing activity rising a seasonally adjusted 4.5 percent after seven consecutive quarters of decline.
Mr English said the GDP growth was "broadly in line with expectations", and while the figures were another step in the road to recovery, there was still ground to be gained since the global crisis hit and New Zealand's recession kicked in early 2008.
"Our economy faces numerous challenges and that is reflected in consumer confidence figures which have dipped in the first part of this year."
Mr English said the global economy was still fragile and there were significant imbalances in New Zealand's economy, partially because of too much borrowing for housing and consumer spending.
The May budget would set out the next steps to lift economic growth by tilting the playing field towards productive investment, exports and new jobs, Mr English said. That included a drive to cut government spending.
Westpac economist Dominick Stephens said the data "looks a lot like the early stages of the recovery we have long been expecting".
"The consumer has made something of a comeback (and) manufacturing did very well." Mr Stephens said the housing market was the key weak spot.
