New Zealand GDP rose less than expected due to falling export milk

Moscow. June 15. INTERFAX.RU – the Growth of New Zealand’s GDP in the first quarter of 2017 accelerated to 0.5% compared with the previous three months, October-December, the rise was 0.4%. However, the pace of increase was weaker than expected with the market of 0.7%, writes the Financial Times.

Despite the steady growth of agriculture in January-March (+4.3 percent) – the highest since the third quarter of 2014, the export of milk and dairy products from New Zealand fell by 11%, which had a negative impact on GDP dynamics. Overall exports of goods and services decreased by 0.4%.

Activity in the construction sector decreased for the first time since April-June 2015, a decrease from the previous quarter was 1%. Transport, postal and warehousing services decreased by 2%. However, retail trade and hospitality increased by 1.8%. In annual terms, GDP in New Zealand grew by 2.5% in the first quarter after rising 2.7% in October-December.