New GDP figures show New Zealand out of recession but still contending with an insipid inflation-battered economy.
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On Thursday, Stats NZ revealed GDP growth of 0.2 per cent in the March quarter.
Annual growth was also measured at 0.2 per cent in the year to March.
The slight uptick pulls New Zealand out of a technical recession after back-to-back slides in the last half of 2023, and contractions in four of the five of the last quarters.
GDP per capita is down 0.3 per cent in Q1 2024, the sixth-straight quarter this measure has fallen.
Reflecting the cost of living squeeze felt by many Kiwis, GDP per capita has fallen 2.4 per cent in the last year.
NZ is experiencing near-record migration, with population growth propping up overall consumption.
The result was on the bright side of expectations, with analysts and bank economists tipping a range of figures between another shallow contraction and slight improvement.
Treasury forecast 0.1 per cent growth, with the Reserve Bank correctly predicting 0.2 per cent growth.
Few believe growth strong growth is around the corner.
Westpac senior economist Michael Gordon said the biggest lag on the economy was sluggish construction, with the outlook for 2024 "not looking great".
"Recent indicators suggest that the June quarter is shaping up to be quite soft," he said.
"We do have a small minus pencilled in for (next) quarter as well ... it's going to be something either side of zero growth for much of this year."
NZ is contending with high inflation and rising unemployment a by-product of the country's attempts to stave off economic troubles during the COVID-19 pandemic.
In the Q1 figures, construction fell by 3.1 per cent or $NZ133 million ($A123 million), mining went backwards 1.7 per cent, as did manufacturing, by 1.2 per cent.
The biggest gain was felt by real estate services, up $NZ88 million ($A81 million), and electricity.
The size of the economy was measured at $410 billion ($A377 billion).
The quarterly headline growth figure of 0.2 per cent was similar to many advanced economies New Zealand compares itself to, including Australia (0.1), Canada (0.4), the EU (0.3) and UK (0.6).
Australian Associated Press
