3. Economy—Growth Resilience and BrexitANDREW BAYLY (National—Hunua) to the Minister of FinanceEconomy—Growth Resilience and Brexit3. ANDREW BAYLY (National—Hunua) to the Minister of Finance: What reports has he received showing construction tourism and services are driving New Zealand's economic growth?Hon BILL ENGLISH (Minister of Finance): Treasury reports economic data over the last month point to a slightly stronger economy than was expected. Real GDP growth in the March quarter was slightly above Budget forecasts driven by higher tourism numbers in spending and growth in 10 out of 11 service industries. The construction sector has been a major driver of growth with activity at record levels. Construction in Auckland has doubled in the last 3 years and between 2014 and 2017 85000 dwellings are expected to be delivered. That is the equivalent number of new houses of twice the size of Dunedin City.Andrew Bayly: How does he expect the recent rebound in business confidence to support economic growth in New Zealand?Hon BILL ENGLISH: Some of that lift in business confidence is because of the extensive construction pipeline out ahead of us and the production of 85000 new dwellings by the end of 2017. The New Zealand Institute of Economic Research's business outlook survey shows confidence lifting. It has lifted across construction manufacturing and services as well as across the regions. Hiring intentions and business investment intentions are also positive. Overall this points to business seeing a positive economic outlook.Grant Robertson: In reference to that last answer how many of the houses that the Minister mentioned would be considered affordable houses?Hon BILL ENGLISH: If you look at the cost of servicing debt then on average—and I would stress on average"—those houses cost households around the same proportion of weekly income to service the debt as they used to. But of course in parts of the country some of those houses are not going to be affordable particularly for middle and low income families and I hope that the Opposition will support the Government's measures to increase land supply settle down the housing market and therefore make houses more affordable.Andrew Bayly: What reports from international institutions has he seen that recognise the strength and resilience of the New Zealand economy?Hon BILL ENGLISH: Last week the Moody's rating agency confirmed New Zealand's triple A rating based on the country's "high economic strength high institutional and Government financial strength and low susceptibility to event risk."—that is New Zealand's ability to withstand or be resilient to shocks in the global economy. They point to the following factors supporting their assessment—that public debt levels are lower than most other triple As the strong fiscal framework and political consensus on targeting balanced budgets and low debt and a strong banking system.Andrew Bayly: What is Treasury's assessment of how the vote by Britain to exit the European Union will affect New Zealand?Hon BILL ENGLISH: It will not have much greater insight than the much-studied impact of Brexit. But it does consider that the effects on New Zealand are likely to be limited. Many forecasters expect a recession in the UK in the second half of 2016 and growth in the European Union—the world's third-biggest economy—is also expected to be negatively affected. The UK accounts for 3.3 percent of goods exports from New Zealand and 7.3 percent of service exports. Our largest exports are lamb wine and tourism. Treasury believes the effects will be limited."