Lions Tour Boosts NZ Economy

The economy of New Zealand grew to 0.8 percent in the April-June quarter, and the credit for this goes to the boost in tourism from the tour of British and Irish Lions rugby, official data of tour reveal this information showed Thursday.

New Zealand Statistics said the quarterly figure, which was, according to the market expectations released on Saturday, days ahead of national elections, took annual growth to 2.7 percent.

The report says, exports raised to 5.2 percent, and it the best quarterly performance in the span of 20 years, almost, amidst high demand for dairy and forestry products of New Zealand. The export volumes of Dairy surged to 19 percent as this sector sustained to bounce after a long downturn. The Statistics of NZ say the accommodation and retail trade rose 2.8 percent, because of the tourist lift that place got for the Lions tour. This is normally a stagnant and quiet period of the year.

It said “An increase in the number of international visitors in this quarter, categorically from the United Kingdom, led to incline of international guest nights, which ultimately benefitted the industry”.

Paul Dales, the capital Economics analyst said the figures of growth were “decent” and can also favor election to Prime Minister Bill English. Bill English has campaigned for economic credibility.

The figures have overall been good, the only concern, which is also a major one is that, the figures show a 1.1 percent fall in the construction activity, and it is concerning because, this is the second consecutive quarterly drop of the sector.

He said, “We have a doubt that construction will be a continuous drag on GDP growth in the next year, but it is clear that this is not going to add as much to grow as in recent years”.