Gross domestic product in New Zealand rose by 1.6% in the March 2021 quarter, following a 1.0% fall in the December 2020 quarter, according to data from Statistics New Zealand (Stats NZ).

"After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021. This is despite Auckland being in alert level 3 lockdown for 10 days, and continued border restrictions," national accounts senior manager Paul Pascoe said.

The services industries, which represent about two thirds of New Zealand's economy, made the largest contribution to the rise.

"Households spent more on accommodation, eating out, and purchasing big ticket items such as furniture, audio visual equipment, and motor vehicles. This helped support the growth in retail trade and accommodation industry and wholesale trade industry," Pascoe added.

Higher activity was also seen in the business services, health care and social assistance, and information media and telecommunications industries in the March 2021 quarter.

While GDP rose in the March 2021 quarter, on an average annual basis, GDP fell 2.3% in the year ended March 2021. Several industries have fallen on an annual basis, declines that can be largely attributed to the effects of the alert level 4 lockdown in the June 2020 quarter, and continued Covid-19 related disruptions such as the border restrictions and changing alert levels in the quarter.

The annual decline in GDP reflects the four quarters to March 2021 compared with the four quarters to March 2020.