- Hon Nicola Willis
Economic data released today reflects the impact global uncertainty has had on consumers and businesses, Finance Minister Nicola Willis says.
Stats NZ figures released today show real Gross Domestic Product fell 0.9 per cent in the second quarter of the year after a 0.9 per cent increase in the first three months of the year.
"International turmoil and uncertainty relating to tariffs clearly had an impact on firms' and households' willingness to make investment decisions," Nicola Willis says.
"The second quarter of the year started the day before United States tariffs were announced.
"The economy had been growing strongly in the previous six months, but suddenly had the stuffing knocked out of it. I feel for people and businesses who have been affected.
"It is important to remember that this is backwards-looking data. We are now nearing the end of the third quarter and there are signs the economy is growing again.
"Lower interest rates are filtering through the economy. There is evidence of increased mortgage lending. And the impact of tariffs has not been as disruptive as initially feared. The outlook for most export sectors remains positive.
"All forecasters are expecting economic growth to strengthen from now on as uncertainty about the impact of increased tariffs eases."
