The New Zealand economy grew at its fastest quarterly pace in five years as good weather stoked milk production, and led to greater dairy manufacturing. The kiwi dollar surged to above 80 US cents after the figures were released.
Gross domestic product grew 1.1 per cent to almost $35 billion in the three months ended March 31, the fastest quarterly pace since March 2007, according to Statistics New Zealand. That's more than twice the 0.5 per cent pace forecast in a Reuters survey of economists and almost three times the Reserve Bank's 0.4 per cent projection.
The government statistics bureau revised the three previous quarters to 0.4 per cent growth in each period, a cumulative increase of 1.2 percentage points.
"This quarter we saw growth spread across a number of industries, while in previous quarters the industry picture had been more mixed," national accounts manager Rachael Milicich said in a statement. "Good growing conditions have been a major factor in the growth this quarter, and are reflected in both the milk production in in agriculture and in meat and dairy manufacturing."
The kiwi dollar climbed as high as 80.06 US cents from 79.55 cents immediately before the figures were released. The kiwi was recently at 79.96 cents.