Acting Finance Minister Jim Sutton said today's gross domestic product figures were not unexpected.
The -0.7 figure was within the anticipated range.
Mr Sutton said that there were some temporary and some technical explanations for the decline, particularly the early
end to the dairy season and low levels of construction activity compared with the high March quarter level. "It is
important to remember that the annual growth rate is still a very healthy 4.8 percent. The outlook is for very
satisfactory growth averaging around three percent a year."
He said it was expected that this current quarter's figures would lift significantly, reflecting tourism and export
growth.
"The confidence in the rural sector will flow through to the rest of the economy. In addition, many urban based
exporters are now taking advantage of continued strong world growth and a favourable exchange rate."