New Zealand : economy statistics and industry reports

Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers.

Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit.

The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09.

In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures.

The economy posted a 1.

7% decline in 2009, but pulled out of recession late in the year, and achieved 2.

1% growth in 2010.

Nevertheless, key trade sectors remain vulnerable to weak external demand.

The government plans to raise productivity growth and develop infrastructure, while reining in government spending.