2. Economic Growth—Reports and ForecastsNUK KORAKO (National) to the Minister of FinanceEconomic Growth—Reports and Forecasts2. NUK KORAKO (National) to the Minister of Finance: What reports has he received on the economy?Hon BILL ENGLISH (Deputy Prime Minister): Earlier today Statistics New Zealand released the GDP for the March 2016 quarter confirming New Zealand is heading in the right direction. You always have to be a bit careful with quarterly numbers because they can be unpredictably up or down. However looking back over the year to March the New Zealand economy has grown at 2.8 percent. The March quarter result was at the top end of market expectations. Growth was broad-based with 12 of the 16 industry sectors growing in the March quarter and 13 of the 16 industry sectors growing through the year consistent with the ongoing diversification of the New Zealand economy.Nuk Korako: What were the main drivers of growth in the economy in the year to March?Hon BILL ENGLISH: The main drivers include the construction sector. We are building more houses—in fact a 3.9 percent increase for the year way ahead of the average for GDP with strong compound growth in the construction sector. Business services retail trade and accommodation also increased solidly; tourism was a major contributor—Phil Twyford: You should start building more motels for the homeless to live in.Hon BILL ENGLISH: Well the GDP figures rebut the Opposition's assertion that no new houses are being built. In fact there is a—by any measure—rapid increase in supply. Of course supply needs to increase more rapidly.Grant Robertson: Has the Minister seen any reports about the fact that the economy has delivered an increase in homelessness in the larger cities in New Zealand and has delivered to an 11-year-old girl who only wants to do her homework the prospect of living in a car with six other people; and when will he stop being so arrogant—Mr SPEAKER: Order! The last part is not necessary.Hon BILL ENGLISH: I can assure the member that we will not be exploiting the complexity and vulnerability of that child and her family. And the member before he raises that issue publicly ought to go and consult with the family to ensure that this is what they want for their child. [Interruption]Mr SPEAKER: Order!Nuk Korako: How does New Zealand's growth rate compare with other OECD countries?Hon BILL ENGLISH: The growth figure of 2.8 percent for the year is in the context of many developed countries struggling in a low-growth environment. New Zealand's 2.8 percent puts New Zealand into the top 10 in the OECD compared with 2 percent in the UK and the US 1.7 percent in the Euro area 1.1 percent in Canada and zero growth in Japan. So our growth would be described as moderate but it is better than a number of the large developed economies.Nuk Korako: What are the various forecasts he has seen for the economic outlook of the New Zealand economy?Hon BILL ENGLISH: Given global uncertainties the highest profile of which in the next few weeks is the possibility of Britain exiting the European Union we see reasonably consistent outlook. Treasury is forecasting 2.8 percent growth for the next 4 years the Reserve Bank forecasts 2.8 percent for the next 3 years The New Zealand Institute of Economic Research forecasts an average of 2.9 percent over the next 4 years and the general consensus in the market showed growth of 2.7 percent over the next 3 years. What we are looking for and what the economy is delivering is moderate consistent growth but of course it is at risk if global circumstances change.Rt Hon Winston Peters: If the economy was going so well why does he have to get up and try to convince his backbench of that when we all know it is turning to crap?Hon BILL ENGLISH: It is not a matter of persuading our backbench; it is a matter of all those people stopping at the New Zealand First stand at the Fieldays persuading that member that the economy is going OK. I suspect actually he was listening to the thousands of people at the Fieldays who were telling him it is going OK.