Economy grows 1.4% in last quarter

December 19th, 2013 at 4:00 pm by David Farrar

Stats NZ reports:

Rebounding dairy production drove a 1.4 percent increase in gross domestic product () for the September 2013 quarter, Statistics New Zealand said today. This increase in is the largest since the December 2009 quarter.

The strong increase in dairy production was the main contributor to a 17.0 percent rise in agriculture, which makes up about 5 percent of the New Zealand .

Not bad.

People will recall how the future Labour/Greens/NZ First/Mana Government have been saying manufacturing is in crisis.

Manufacturing GDP also increased 1.5% in the last quarter.

Also recall how Greens/NZ First and Mana (not Labour) all opposed the FTA with China. Well also reported today:

For the first time, China has surpassed Australia as New Zealand’s top goods export destination on an annual basis, Statistics New Zealand said today. …

The trade balance for November 2013 was a surplus of $183 million (4.1 percent of exports). This is the first trade surplus for a November month since 1991. This follows a trade deficit in October 2013, which was the lowest deficit for an October month since the mid-1990s.

Things are looking good – if we keep the right policies.

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21 Responses to “Economy grows 1.4% in last quarter”

  1. Manolo (13,746 comments) says:

    Things are looking good – if we keep the right policies.

    It means: Keep Greens and socialist Labour away from political power at any cost!.

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  2. wikiriwhis business (3,996 comments) says:

    ok, all sounds good.

    I see a new restaurant called Zomatoes is opening in hamilton offering 25 new jobs.

    I would guess those jobs would all be won by childless young people who don’t need a lot of money

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  3. wikiriwhis business (3,996 comments) says:

    ‘It means: Keep Greens and socialist Labour away from political power at any cost!.’

    Pfff. There’s no way we’ll be able to keep away from the TPP and therefore Chinese clutches.

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  4. Tautaioleua (304 comments) says:

    The Australians are bloody hopeless. So you don’t want our apples? fine, we’ll send them to China instead. Good luck with your $47 billion dollar deficit. Just in time for Christmas.

    I bet it sucks to be you right now!

    :-)

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  5. Adolf Fiinkensein (2,903 comments) says:

    Tautaioleua

    It’s closer to $100 billion.

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  6. wikiriwhis business (3,996 comments) says:

    ‘It’s closer to $100 billion.’

    I was told Oz has no oversaes deficit.

    Who do they owe $100 billion to ?

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  7. Longknives (4,737 comments) says:

    I think Bill English is the unsung hero of this Government- Excellent work.
    Now watch Wussel Norman come along and deliberately fuck it all up….

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  8. Zapper (1,021 comments) says:

    I’m sure your sources are impeccable wiki

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  9. Alan (1,087 comments) says:

    Australia has a Net government debt of 11% of GDP, our is 26%.

    We’ve still got a long way to go, although we’re tracking the right way compared to them.

    These are 2012 IMF Figures.

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  10. Adolf Fiinkensein (2,903 comments) says:

    wiki you are a dumbarse. A product of NZ’s socialist education system.

    A deficit is the difference between gummint revenue and gummint spending in a particular year. It’s kinda like a profit and loss account. Overseas debt is money that is owed by a gummint to overseas lenders. Some might be owed to domestic lenders, by the way. You appear unable to grasp the difference between the two.

    Do come back and comment again when you’ve grown up

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  11. RRM (9,917 comments) says:
    The strong increase in dairy production was the main contributor to a 17.0 percent rise in agriculture, which makes up about 5 percent of the New Zealand economy.

    Not bad.

    People will recall how the future Labour/Greens/NZ First/Mana Government have been saying manufacturing is in crisis.

    Don’t forget DPF that dairy and manufacturing are two different things! ;-)

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  12. gump (1,647 comments) says:

    @Adolf Fiinkensein

    “You appear unable to grasp the difference between the two.”

    ———————————–

    I’m no friend of wikiriwhis business, but it is pretty clear that he/she was talking about the Australia trade deficit.

    You know – the difference between what a country exports and what a country imports.

    The Australia trade deficit that has averaged -495.50 Million AUD per year between 1971 and 2013. That’s a cumulative trade imbalance of over 20 billion AUD.

    http://www.tradingeconomics.com/australia/balance-of-trade

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  13. duggledog (1,555 comments) says:

    Wiki

    “I would guess those jobs would all be won by childless young people who don’t need a lot of money”

    Most of those jobs will go to whomever has the basic skill sets of (in no particular order):

    Punctuality
    Pleasant demeanour
    An ability to get on with other people
    An ability to demonstrate some sort of loyalty to their new employers and not start looking to leave within 5 minutes.
    No criminal convictions

    So that makes a good chunk of local applicants ineligible, along with most of Huntly and all of Ngaruawahia:)

    Like the dairy farmers in the South Island, Zomatoes will no doubt look to Filipinos or some such nationality that hasn’t had generations of socialism to destroy its countryfolk’s work ethic and heighten its expectations

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  14. nasska (11,478 comments) says:

    RRM

    Getting the milk out of a cow is dairying…..turning it into milk powder or some other product is classed as manufacturing.

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  15. Inky_the_Red (759 comments) says:

    looking at the tables Seasonally adjusted chain-volume series expressed in 1995/96 prices for Manufacturing was $5.026 billion in September 2013 with food etc (includes meat and dairy) manufacturing at $1.7billion for the same period.

    The high point of the manufacturing series was September 2005 when food etc mfg was also higher at $1.842Billion.

    The latest figure is the highest level for manufacturing is the highest since September 2008. So manufacturing is now about the same level as when the Nats were elected. So manufacturing has grown less that the rest of the economy

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  16. Inky_the_Red (759 comments) says:

    Sorry I misread the Stats NZ table I should have said “The latest figure is the highest level for manufacturing is the highest since June 2008″

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  17. bhudson (4,740 comments) says:

    @RRM,

    I think you’ll find that DPF said that manufacturing had also increased – not that that it was responsible for the GDP increase.

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  18. Jack5 (5,137 comments) says:

    Nice,but let’s get some balance.

    Immediately under the item reported on above, we find on the Stats NZ page news that in the September quarter NZ recorded its largest quarterly current account deficit for nearly five years.

    Remember NZ has not had a current accounts surplus for nearly 40 years!

    The boffins sometimes argue that current account deficits don’t matter with floating exchange rates, as in this old article:

    New Zealand’s currency is freely floating, so in time the exchange rate should adjust to help eliminate the current account deficit.

    Then, either a sharp correction in the exchange rate is on the cards, or floating exchange rates don’t solve long-range current account deficits.

    The September quarter current account deficit:

    http://www.stats.govt.nz/browse_for_stats/economic_indicators/balance_of_payments/BalanceOfPayments_MRSep13qtr.aspx

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  19. Reid (16,442 comments) says:

    As we all know we’re completely dependent on the global economy which still rests, not for much longer but still does today, on the US. And the only thing working well in the US is the stock market. And the only reason that is working well is because with interest rates at zero there is no point in holding cash so everyone has been putting it into stocks. Additionally, the growth plans for all the US corporates have not been founded on investment in plant and R&D – no. They’ve been based on share buy-back schemes and other financial manoeuvres that have a short-term effect on the balance sheet but which don’t ultimately contribute to the stability or growth of that corporates’ fundamentals.

    The combination of these two things right across the US corporate sector are the only reasons why US stocks are performing the way they’ve been performing. In other words, it’s a recovery built on sand.

    Those who have read history and know that it repeats only when you forget it, will have noted the confluence between the market in 1929 and today – almost an exact match. For in 1929 there was a downturn then a recovery before the final big crash, precisely what has happened today. And if you overlay the charts, the date of the crash today will be 14 Jan 2014. One doubts it will be that particular date of course, the smart money is divided over when it will be, but they’re all saying its coming in 2014. Will it be Q1? Who knows. But when it does, our recovery along with every other country will be heavily affected. Plan for it and note that this time, unlike 1929, there will be no US recovery, they have nothing with which to base the recovery on. Plus debt is much much greater now than it was back then, for everyone. Most people will lose all their retirement savings, try not to be one of those.

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  20. freethinker (691 comments) says:

    Reid – remember the Mark twain saying – reports of my death are greatly exaggerated. So to is the economic demise of the US as you ill their innovation and ability to adapt to changes will produce the products services and jobs required to continue their improvement in citizens living standards – there will be times when this does not happen and even go backwards but over time will improve. Compared with other Western Type economies the US and perhaps the UK are coming out of the economic crisis before and in better shape than most others.

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  21. Reid (16,442 comments) says:

    freethinker it’s hard to stay afloat when you’re being undermined by invisible forces within who are at the highest levels and operate with impunity save for a few free thinkers who aren’t tied to their controlled media.

    If you think that’s too fantastic for words then you haven’t been paying attention to what’s been happening to the US over the last few decades. Remember what Roosevelt said:

    In politics, nothing happens by accident. If it happens, you can bet it was planned that way.

    Remember that in light of the actions of Greenspan following the Dot Bomb bubble when he dropped interest rates to zero which prevented those losses from working their way out of the system and became the seed of sub-prime; the Bush actions using obscure legislation from the OMB to shut down Spitzer and the other State Attorneys General who were trying to regulate the markets to prevent the lending practices that caused sub-prime; the Clinton advocacy of off-shoring that denuded the US of its industrial engine room; the ‘war on terror’ that introduced the police state apparatus which is all waiting, ready to swing into action; Obamacare which allows the govt to sell people’s houses for pay for medical care; etc, etc, etc.

    And for those who hallucinate it can’t be so because “thousands of people would have to be involved and one of them would have talked by now,” well duh. They do talk, but you’re not listening to them.

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