Kiwis’ accommodation spend and eating out helps boost NZ economy
Post-COVID freedoms and international tourists return helping to drive growth
New Statistics NZ (SNZ) figures attribute the slow easing of COVID restrictions in combination with a revived service sector as a key factor in New Zealand’s GDP rebounding by 1.7 percent in the three months to June 2022.
This compares to a – 0.2 percent deficit recorded for the previous quarter.
Our latest AccomNews print issue is available now! Read it HERE.
SNZ Industry and Production Senior Manager, Ruvani Ratnayake said the reopening of borders, the easing of both domestic and international travel restrictions, and fewer domestic restrictions under the orange traffic light setting had helped support growth in those industries most affected by the COVID-19 response measures.
This, he said, included the service sector which rose by 2.7 percent as New Zealanders and returning overseas visitors spent more on transport, accommodation, eating out and sports and recreational activities.
The sector makes up two-thirds of the country’s economy.
Exports also jumped 20.5 percent, the increase attributed to the return of international tourists.
The June quarter result means New Zealand has avoided a technical recession of two consecutive quarters of negative GDP growth.
The 1.7 percent growth was sharply higher than forecasts of around 1 percent but slower than the 3 percent rise in the December quarter.
This in turn was much stronger than the 3.9 percent slide in the three months to September when the COVID restrictions closed down the economy.
Mike Parker-Brown is a UK-trained and qualified journalist and an award-winning travel communicator with more than 30 years experience.
Since 2002, Mike has worked as a freelance writer and PR consultant providing his services to major organisations in Australia and internationally in the tourism, aviation, hospitality, recruitment and export marketing sectors.
