New Zealand saw its economic growth progress sharply especially in the September quarter. GDP increased by as much as 0.9 percent.

The uptick in GDP was considered a compensation for the less than desirable first half performance. New Zealand's growth for June quarter was reduced to 0.3 percent. The rise in GDP also paved the way for 2.3 percent annual growth, enough to meet to expectations. New Zealand's September growth is largely due to the progress of manufacturing and services industries.

“The service industries were fuelled by greater domestic demand and spending by international visitors," National accounts manager at Statistics New Zealand, Gary Dunnet, said in a statement.

“Nine of the 11 service industries reported increases this quarter.”

Agriculture weakened but the gains in the service industries were enough to pull the economy. However, New Zealand saw a sour decline in its construction industry, especially in the civil components sector. The previous year's growth estimates have been revised considerably. Estimates for the 2014 calendar year growth is now at 3.7 percent. This offers an insight on the extent of the country's economic momentum for the current year.

Furthermore, the report emphasised the importance of seeing solid GDP growth in line with the extremely strong growth of the population. The GPD's growth pace has come to a low in terms of per capita. The increase in unemployment rates, coupled with low inflation suggest that the economy has been running with rising spare capacity.

As a result of the increase in GDP, the New Zealand Dollar inched higher compared to the US dollar. Economists previously estimated growth at 0.8 percent. Consequently, this is also considered the fastest pace of quarterly growth in a year. The country’s yearly basis GDP growth percentage is in line with the expectations of analysts.

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