Treasury is expecting strong economic activity for the second half of 2013, due to robust domestic demand and a bounceback from the drought.
In its latest set of monthly economic indicators, the department is picking growth to accelerate to about 1% in each of the September and December quarters, after modest gains in the first half of the year.
Robust consumer spending and the rising pace of the rebuild in Christchurch have underpinned domestic demand, it says, while the drought has hurt farming production.
With farming now recovering, particularly in the dairy sector, chief economist Girol Karacaoglu says a relatively strong second half of the year should result.
