New Zealand GDP decreases 0.2 pct in Q1

WELLINGTON, June 16 (Xinhua) -- New Zealand GDP fell 0.2 percent in the March quarter, following a rise of 3 percent in the December 2021 quarter, the statistics department Stats NZ said on Thursday.

Primary industries drove the decrease in GDP, down 1.2 percent in the quarter. Goods-producing industries also experienced a slight decline, down 0.1 percent, Stats NZ said.

"We saw lower output in the food, beverage, and tobacco manufacturing sub-industry; and the agriculture, forestry, and fishing industry," national accounts industry and production senior manager Ruvani Ratnayake said in a statement.

"These declines corresponded to falls in related exports categories, including dairy products; meat products; agriculture and fishing products; and other food, beverage and tobacco products," Ratnayake said.

The service industry group, which makes up approximately two-thirds of the economy, remained flat. This result reflects falls in some industries being offset by rises in others, she said.

The services industry saw a range of results in the March quarter. Education rose as early childcare centers were able to reopen to a greater capacity, while activity in retail trade and transport support services were down in what is traditionally New Zealand's peak tourist season, Ratnayake said.

The expenditure measure of GDP was down 0.1 percent this quarter, Stats NZ said.

A fall in net exports, driven by falling exports of goods and services, was offset by rises in household consumption expenditure, government expenditure, and gross fixed capital formation, Ratnayake said.

The change in economic activity came in a quarter marked by the community spread of the Omicron COVID-19 variant. The March quarter included low travel due to border restrictions. However, there were fewer domestic restrictions than in previous quarters, she said.

Economic activity has shown a greater degree of volatility since the March 2020 quarter due to the impacts of the COVID-19 pandemic and associated response measures, she added.

While the domestic economy is resilient and the annual GDP figure is strong, many New Zealanders are struggling with higher prices, Deputy Prime Minister and Finance Minister Grant Robertson said, adding the government has implemented a series of measures including reducing Fuel Excise Duty, Road User Charges and halving public transport fares.