Economy grows more strongly

New Zealand’s economy grew more strongly than expected in the March quarter. This confirms its moderate underlying strength, despite ongoing economic and financial market uncertainty around the world.

The 1.1 per cent quarterly increase in Gross Domestic Product took annual growth to 2.4 per cent compared to March 2011, which is better than growth in most other developed countries.

We are likely to see fluctuations in growth from quarter to quarter, as households and businesses get used to building their incomes around higher savings and earnings, rather than consumption and debt.

What’s important for the National-led Government is taking a long-term view of building New Zealand’s competitiveness and productivity. This will help us deal with headwinds from the uncertain global environment. That is the focus of our economic plan.

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