The jump in output in 2012 was primarily led by agriculture (up 29.8 per cent) due to good growing conditions.Statistics New Zealand

The weekend's rain has been welcomed as a start but hasn't come near the 100mm needed to put an end to the drought.

Goodbye frosts, hello droughts and bush fires.

Some time next year, what could be the world's largest research project will be presented to the United Nations' Inter-governmental Panel on Climate Change.

Finance Minister Bill English now believes the drought could cost the nation's economy up to $2 billion - double the figure estimated last week.

Farmers need to adapt for a drier future as events like the 'once-in-a-lifetime' drought become closer to the norm.

The drought conditions much of the country is facing could lead to much higher than usual levels of tutin in honey.

Baked-hard sporting fields with barely a blade of grass are threatening to delay the start of winter sports next month.

It’s a sad state when cracks are the only things growing in the garden.

Rain is still on track to spread across the country this weekend, bringing relief to the parched North Island and parts of the South Island heading the same way.

The entire North Island has officially been declared a drought zone. Northland, Auckland, Waikato, Bay of Plenty and Hawkes Bay have already been declared to be in drought.

Reserve Bank governor Graeme Wheeler delivered a warning to the financial markets yesterday - don't assume interest rates can only go up from here.

Mighty River Power has rejected a request to top up the "extremely low" Waikato River and people are being warned that a rain forecast will not be a "silver bullet".

Most of the North Island could be declared a drought zone by the end of the week, but Prime Minister John Key says the impact on the Government's books remains to be seen.

Slaughterman Kent Sambells' workload was "hectic" last week as Waikato farmers called him in to destroy ailing cattle and take them away for processing into pet food.

The NZIER shadow board thinks on balance the Reserve Bank should keep the official cash rate on hold at 2.5 per cent tomorrow, but compared with six weeks ago there is less support for a cut and more for a hike.

A damp start to summer followed by a prolonged spell of dry weather has provided perfect conditions for biting insects.

Long-awaited rain is forecast for the drought-hit Northland region, with showers expected in some areas over the weekend.

Bill English must be asking himself what he did in some past life to have seemingly so incensed the forces of nature, writes John Armstrong. "What next? A plague of locusts? Or frogs? Or boils?"

The waiting list for water delivery on Waiheke Island is getting so long some families need to go without water for days on end.