4 Jul 2011

Modest economic growth for March quarter expected

4:11 pm on 4 July 2011

The Treasury is predicting the New Zealand economy will be shown to have grown modestly in the first three months of the year, despite the devastating earthquake in Christchurch.

In its latest Monthly Economic Indicators, the Treasury says signs of recovery were interrupted by the 22 February quake, but partial data from the March quarter suggest growth of about 0.3%.

Industries that experienced growth include the retail trade, wholesale trade, manufacturing and primary industry.

The construction sector contracted, with falls in both residential and non-residential construction.

Official growth figures for the quarter will be released on Thursday.