NZ GDP up 0.2 pct in December quarter

Gross domestic product rose 0.2 percent in the December quarter as the country managed to stave off a recession in the second half of 2010.
The rise in the latest period followed a decline of 0.2 percent in the three months to September.
Statistics New Zealand (SNZ) said the rise in GDP in the December quarter was due to a rise in goods-producing industries.
SNZ national accounts manager Rachael Milicich said a rebound in manufacturing activity during the quarter had been mostly offset by falls in other parts of the economy.
Notable movements by industry in the December quarter included:
-- manufacturing up 2.5 percent, mainly due to metal product and machinery and equipment manufacturing;
-- real estate and business services up 0.9 percent, mainly driven by business services;
-- forestry and logging up 6.6 percent, reflecting continued overseas demand for New Zealand logs;
-- wholesale trade down 2.7 percent, following four quarters of growth;
-- retail, accommodation, and restaurants down 2.1 percent.
The expenditure measure of GDP was up 0.4 percent in the December quarter, following a fall of 0.3 percent in the September quarter.
The volume of goods and services bought by households was up 0.2 percent, while investment in fixed assets was up 4.8 percent due to increases in transport equipment and nonresidential building investment, SNZ said.
Imports of goods rose 7 percent, the largest increase since the March 2004 quarter, while exports of goods rose 4.1 percent, mainly due to higher volumes of dairy and meat products.
GDP for the year ended December was 1.5 percent higher than for the year ended December 2009, while real gross national disposable income (RGNDI) increased 4.6 percent over the same period.
The main difference between GDP and RGNDI for the year was a $3.56 billion inflow of reinsurance transfers from the rest of the world, related to the September Canterbury earthquake, SNZ said.