The Government’s decision to act quickly in response to the global COVID-19 pandemic has helped the economy recover faster than expected, Grant Robertson said.
GDP rose 14 percent in the September quarter following a revised 11 percent fall in the June quarter.
On an annual average basis GDP fell 2.2 percent in the year ended September 2020.
“The economic bounce back is a result of our decision to go hard and early during the COVID-19 pandemic. We supported more than 1.8 million workers through the Wage Subsidy Scheme and invested billions of dollars into infrastructure, training and creating jobs,” Grant Robertson said.
“While New Zealand’s economy contracted in 2020, it is expected to rebound strongly in 2021, in line with countries we compare ourselves to, like Australia and the United States, and outperforming the United Kingdom and Japan relative to these countries’ 2019 starting point.
“Global economic activity is expected to continue to recover over the rest of the forecast period, although the pace of recovery is likely to be uneven as countries contend with renewed virus outbreaks and the resulting containment measures.
“The full economic effects of COVID-19 are still to be felt in New Zealand and across the world. The Government will continue to work with businesses and workers to cushion the blow and support job retention and creation,” Grant Robertson said.