Exports pull Country out of Recession

Media Release
23 September 2009

Exports pull Country out of Recession

June quarter GDP figures show that the economy is officially out of recession but uncertain times remain ahead according to the Wellington Regional Chamber of Commerce.

“The figures are consistent with the growing confidence that is being shown by business,” said Chamber CEO Charles Finny.

“Sustained low interest rates, rising net migration, the China FTA and rebounding commodity prices are all factors that have boosted business confidence and economic activity in recent months.

“Notwithstanding today’s figures, employment growth and wage growth is expected to lag and businesses are likely to be cautious in making investment decisions over the coming months.

“We hope that lessons have been learned from the factors which led to such a pronounced downturn.

“Increased exports to China were a major driver of the growth in economic activity. This once again illustrates the importance of our trade policy and in particular the Free Trade Agreement we have with that country. Exports to China increased 62% in the year to June.

“Growth in local government activity had a positive contribution to the figures but this is something that we are not so happy about. We are concerned about the inevitable catch-up in rates that will be needed to close the widening deficits the sector which does not bode well for the medium term,” Mr Finny concluded.

ENDS

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