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Recovery is patchy - English

A fifth successive quarter of economic growth is another sign the recovery is continuing although the figures released today show it is patchy, Finance Minister Bill English says.Statistics New Zealand reported economic activity edged up in the June quart

NZPA
Thu, 23 Sep 2010

A fifth successive quarter of economic growth is another sign the recovery is continuing although the figures released today show it is patchy, Finance Minister Bill English says.

Statistics New Zealand reported economic activity edged up in the June quarter, with gross domestic product (GDP) rising 0.2 percent following a 0.5 percent rise in the March quarter.

"Looking ahead, I expect some volatility in the next few quarters of GDP data," Mr English said.

"The Canterbury earthquake and uncertainties about the global outlook will no doubt impact on New Zealand's immediate economic performance."

Mr English said the latest quarterly growth was below expectation and reflected the patchy nature of New Zealand's recovery from the international recession.

"Total domestic spending fell slightly. By contrast, export volumes have increased 7 percent from their lows of 2008 and they had their second strongest quarter on record," he said.

"The Government's tax package next week will further help the economy in the long term."

The Council of Trade Unions (CTU) said the GDP figures underlined concerns that the recovery was stalling.

"It is not good news for employment growth and for reducing the high level of unemployment," said CTU economist Bill Rosenberg.

"The Government should be looking at further measures to boost activity in the economy and support for people who have lost their jobs."

He said the Reserve Bank should continue to resist rises in interest rates.

NZPA
Thu, 23 Sep 2010
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Recovery is patchy - English
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