MEDIA RELEASE

Hon Bill English Treasurer

Rt Hon Sir William Birch Minister of Finance

25 June 1999

GDP figures show steady growth

Today's GDP figure of 0.7% growth for the March 99 quarter confirms the economy is well into recovery, Treasurer Bill English and Finance Minister Sir William Birch said.

"We have now seen three quarters of positive growth, of 0.6%, 0.9% and 0.7%, which confirms the economy is steadily recovering from last year's Asian crisis," said the Ministers.

"Growth occurred in both the domestic economy and in exports. Household spending was up, particularly on durable goods. Export growth was a robust 1.5% for the March quarter reflecting particularly strong growth in the tourism sector.

"Two consecutive droughts continue to impact on the agricultural sector. Business investment was up 4.8% for the quarter which shows New Zealand firms are continuing to invest and are confident about their future opportunities. This reflects recent surveys which have shown high levels of business confidence.

"Today's GDP figure is in line with tax returns showing the fiscal outlook running ahead of Budget forecasts.

"Continued growth on this track augers well for a return to surplus next year," said Mr English and Sir William.

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