Economy up 3 percent in the final quarter of 2021 – Stats NZ
The economy rebounded at the end of last year as consumer spending picked up after Covid lockdowns were eased.
Stats NZ data showed gross domestic product (GDP) rose a seasonally adjusted 3.0 percent in the three months ended December, slightly below expectations, and compared with a revised 3.6 percent fall in the previous quarter.
Growth was driven by improved activity in the retail, hospitality and construction sectors.
“Households spent more on goods and services, particularly on durable items such as clothing and footwear, and electrical appliances,” Stats NZ senior manager Ruvani Ratnayake said.
Service industries make up about two thirds of the economy, and showed 2.5 percent growth, but the household spending component rose 5.2 percent.
Goods producing industries such as manufacturing rose 6.5 percent, after slumping 7 percent in the previous three months when lockdowns were in force.
“There were notable rises in transport equipment, machinery, and equipment manufacturing; and metal product manufacturing, with higher exports of related products seen in the quarter,” Ratnayake said.
Construction rose 8.7 percent in the quarter, driven by construction services and heavy and civil engineering.
Agriculture was one of the few parts of the economy to slip during the quarter falling down 3.8 percent, mainly driven by falls in beef and dairy cattle farming.
GDP rose 3.1 percent on the same quarter a year ago, and on an annual average basis rose 5.6 percent.
Early indications for the start of this year suggest growth has been more sluggish, with consumer and business confidence falling in the face of inflation at 5.9 percent, the highest in more than 30 years, and the Reserve Bank has seen raising interest rates steadily through the year.
