Home building, household spending strong

Statistic New Zealand figures issued today showed the economy, which grew 0.2 per cent in the June quarter, was hit by a power crisis, drought, severe acute respiratory syndrome in Asia, a rising Kiwi dollar, and a poor global economy.

The result was the weakest quarterly growth in three years, taking the annual rate to 4 per cent.

That was slower than the 4.4 per cent in 2002, though some economists expect a rebound in the second half of this year as tourism recovers and industry picks up from the power crisis.

Read More - Opens in a new window