Statistics Illustrate the Importance of Services

Statistics Illustrate the Importance of Services to New Zealand

Today’s GDP data illustrates the importance of services to the New Zealand economy and the need for the Government to put this sector at the centre of its economic and trade policies according to the Wellington Regional Chamber of Commerce.

“The Balance of Payments figures released yesterday and tourism figures released today also highlight the importance of the services sector for our economic wellbeing. In contrast to our large merchandise trade deficit, our services trade is running a surplus,” said Chamber CEO, Charles Finny.

“Services industries, which account for approximately two-thirds of economic activity, recorded their seventeenth consecutive quarterly increase, up 0.9% in the December 2006 quarter. This accounted for more than 70% of the increase in GDP this quarter. Finance and insurance; real estate and business services; and communication services contributed the majority of this quarter's growth.

“The Wellington region’s economy is one of the most dependent on the service activities of any region in New Zealand. 90% of our regional GDP is generated by services activity.

“The balance of payments figures show services representing around 26% of total exports - $12.1 billion in the year ended December 2006. Export of services is where the growth of the Wellington and New Zealand economies increasingly lies.

“Tourism is a major part of the service sector and is increasingly important to the Wellington economy. Ministry of Tourism data released today showed that international visitor expenditure in New Zealand was $6.4 billion in 2006, up 4% on the previous year.

“In addition to tourism, much of the region’s exports will be transmitted to the world virtually using information and communications technology.

“The growing importance of the services sector highlights the need to have this sector at the centre of our objectives in trade negotiations and trade promotion activities. Global liberalisation of the services sector should be one of our highest priorities in the WTO Doha Round. It is also essential that we achieve good outcomes for the services sector in our bilateral and regional FTA negotiations,” Charles Finny concluded.

ENDS

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