Hon Trevor Mallard
Acting Minister of Finance
29 September 2006 Media Statement
Comment on GDP figure
Acting Finance Minister Trevor Mallard said today’s GDP result was consistent with market expectations and made the
prospect of a soft landing increasingly likely.
GDP grew by 0.5 percent in the June Quarter and 1.9 percent for the year ended June 2006 according to Statistics New
Zealand. Growth in the quarter was slightly lower than the market median expectation.
"The domestic economy is easing as a result of a decline in investment spending and a slight reduction in consumer
spending. This has led to a reduction in imports. Exports are starting to show signs of life and export growth should
continue over the medium term as the dollar falls as part of the normal economic cycle.
"This result today is consistent with the rebalancing we have been expecting in the economy as a result of the
slowdown," Trevor Mallard said.
"Yet again the reality of our economic situation flies in the face of alarmist pronunciations from the leader of the
opposition who recklessly tried to talk our economy down by predicting a recession earlier in the year. His economic
credibility has now taken another hit."
ENDS