NZ economy outperforms forecast growth

The return of business-as-usual air travel has helped New Zealand's GDP jump by two per cent in the September quarter.

The bumper result, released by Stats NZ on Thursday, was more than double the average market expectation of a 0.9 per cent jump.

"With borders opening to all visitors in the September 2022 quarter, we have seen more spending on both international and domestic air travel," Stats NZ spokeswoman Ruvani Ratnayake said.

Annual GDP growth to September 2022 was 2.7 per cent.

Finance Minister Grant Robertson said the result showed the government's COVID-19 economic plan was working, with the New Zealand economy up 7.9 per cent since the start of the pandemic.

"New Zealand is as well placed as any other country to face the shifting global conditions with low unemployment, growing exports, a rebound in tourist numbers and a healthy set of government books," he said.

The size of the New Zealand economy is now $NZ375 billion ($A353 billion).

Service industries, which dominate the economy, were up 2.0 per cent in the September quarter with the transport, postal and warehousing industry leading the way with 9.7 per cent growth.

Construction was healthy, up 5.1 per cent, as was health care, up by the same amount.

Primary industry output fell by 0.2 per cent owing to a 0.8 per cent fall in the agriculture, forestry and fishing sector.

The growth wrong-footed industry analysts and the central bank to show a New Zealand economy in stronger than expected shape.

The Reserve Bank (RBNZ) tipped growth of just 0.8 per cent, with ANZ New Zealand forecasting 0.9 per cent growth and Westpac predicting 1.1 per cent.

In less tumultuous times, the GDP growth might suggest an economy running hot and provide the RBNZ with further reason to hike interest rates as it embarks on its inflation-cutting crusade.

However, ANZ New Zealand chief economist Sharon Zollner said the figures were unlikely to move the RBNZ's dial.

"The bar is extremely high (stratospheric) for these data to have material implications for monetary policy. The data are noisy, ancient history," she said.

"It's all about estimates of capacity stretch at the moment and GDP currently just isn't a good indicator of that."

Downward drivers included a drop in government spending of 1.8 per cent, which Mr Robertson said showed the government was doing its bit to fight inflation.

Treasury and the RBNZ predict inflation to remain high in 2023, producing a shallow recession in the second half of the year.

Council of Trade Unions economist Craig Rennie said New Zealand was "outperforming our international peers".

"New Zealand's COVID-19 economic response appears to have delivered better outcomes and improved economic wellbeing more than many other comparable countries," he said.

"This data cements our view that the economy is doing better than many people had expected."