15 Jul 2011

GDP statistics questioned

8:16 am on 15 July 2011

A stronger-than-expected pickup in economic growth in the first three months of the year has led some economists to question the official figures.

Statistics New Zealand says Gross Domestic Product grew 0.8% in the March quarter - double the rate forecast by economists.

But UBS economist Robin Clements says the figures imply the economy grew by 1.3% in the first quarter, once quake effects are excluded, which he says doesn't match other data and anedotal evidence.

The Council of Trade Unions says the growth figures don't tally with high unemployment at the end of March.

Business New Zealand says it wants to see several more quarterly figures before it will be convinced the economy is growing as strongly as reported.

Statistics NZ says it cross-checked its results with more data after the Canterbury earthquakes disrupted its normal methods and it is satisfied the numbers are accurate.