Two quarters of economic growth after five quarters of contraction is positive news but the recovery remains fragile, Finance Minister Bill English says.
GDP figures released today show the economy grew 0.2% in the September quarter and the June quarter has been revised upwards from 0.1% to 0.2%.
For the year to September, the economy contracted 2.2% compared with the year to September 2008.
"New Zealanders can go into the Christmas break feeling more positive after two quarters of economic growth but more work is needed to ensure a strong, sustainable recovery," English says.
"The positive data follows Treasury's updated forecasts which show unemployment is likely to peak sooner and at a lower level than previously thought, with 64,000 fewer jobs expected to drop out of the economy."
English says the recovery remained fragile and any further problems abroad could weaken New Zealand's growth prospects.
The Council of Trade Unions (CTU) said the news was welcome but did not allay concerns about the state of manufacturing and construction, and the prospects of continuing "unacceptable levels" of unemployment.
"Manufacturing production fell a further 1.9% in the quarter, 11.9% from the same quarter last year, and is now down to June 1999 levels," said CTU economist Bill Rosenberg.
"Construction fell 4.4% and residential building investment had its eighth consecutive quarter of falling production."
