Economy likely to remain sluggish for 2013
Friday 21 Dec 2012 7:34 a.m.
The latest GDP figures show the New Zealand economy growing at a tepid rate of 0.2 percent for the September quarter, and the rate for the June quarter was revised downwards from 0.6 percent to 0.3 percent.
ASB chief economist Nick Tuffley says the sluggish rate comes as a result of some sectors performing at a weaker rate than expected.
“Mining was very weak, that fallback in dairy production meant there was a surprisingly large drop in the food manufacturing parts of it, so there are still some patches in there that are pretty soft,” says Mr Tuffley.
“Consumer spending was pretty flat over the quarter as well.”
BERL chief economist Ganesh Nana says that any growth in the New Year will be slow.
“Best-case scenario is probably more of the same, unfortunately. With a bit of luck it’ll be a little bit of a pickup, but not much to write home about,” says Mr Nana. “But I don’t think it’s going to get worse.”
Mr Tuffley and Mr Nana both agree the Christchurch rebuild will continue to play an important part in the New Zealand economy for 2013.
Watch the video for the full interview with Nick Tuffley and Ganesh Nana