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The recession ended in the June quarter, with the economy growing by the barest of margins, up just 0.1 per cent, according to official figures.
Most economists and the Reserve Bank expected a slight fall in the June quarter, but that growth would return in the September quarter.
Economist said yesterday that a better than expected result for the economy could see the kiwi dollar continue to rise against the US dollar. The recession began at the start of 2008.06c, its highest level since August 4, 2008 after the release of the GDP data.
The New Zealand dollar rose as high as US73.
Economic activity, as measured by Gross Domestic Product (GDP), was up less than 0.
This growth in economic activity follows five quarters of contraction in the New Zealand economy.1 per cent in the June 2009 quarter, Statistics New Zealand said.5 per cent in the June 2009 quarter, mainly driven by forestry and logging (up 8.
Activity in the primary industries was up 1.
The increase in forestry and logging production was related to an increase in exports of logs to the People’s Republic of China.0 per cent).
Activity in the goods-producing industries contracted 0.
Activity in the goods-producing industries contracted 0.3 per cent) and construction (down 1.
The manufacturing (down 1. A 5.9 per cent) industries both declined.
Activity in the services industries was flat this quarter.9 per cent increase in electricity, gas and water partly offset these declines.5 per cent) and communications (up 1. Service industries that increased were real estate and business services (up 1.
Offsetting these increases were declines in wholesale trade (down 2.7 per cent).3 per cent), and government administration and defence (down 0.3 per cent), and government administration and defence (down 0.4 per cent).
The expenditure measure of GDP, released concurrently with the production measure, was up 0.4 percent in the June 2009 quarter.
Household consumption expenditure, which measures the volume of spending by New Zealand households, was up 0.4 per cent.
This increase in household spending was driven by non-durables (mainly motor fuel) and services. Household spending on durable items fell.
Export volumes were up 4.7 per cent in the June 2009 quarter, with exports of dairy and wood products the main contributors.
Import volumes decreased 3.8 percent in the same period, with the largest declines in intermediate goods, and machinery and plant equipment.
The combination of higher exports, lower imports, and a decline in manufacturing led to a large, $1. .