New Zealand economy grows 0.9% in the December 2013 quarter

In line with market expectations, the New Zealand economy grew by 0.9% in the December 2013 quarter.

The quarterly growth in GDP was driven by strong growth in manufacturing activity (up 2.1%), in particular, by increased food, beverage and tobacco manufacturing, and machinery and equipment manufacturing.

Although, dairy farming and dairy product manufacturing fell after strong increases in the previous quarter, exports of dairy products were up strongly (by 20.6%) in the December 2013 quarter, as production from the previous quarter was sold.

Overall economic activity for the year ended December 2013 was up 2.7%. The OECD is forecasting that the New Zealand economy will grow by 3.3% in 2014.

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