The economy has posted strong growth supported by consumer spending and tourism.

New Zealand's gross domestic product rose 1.7 per cent in the three months ending June after the surprise contraction in the first quarter.

The number was at the top end of expectations.

The reopening of borders saw a boost in tourism spending, and greater activity in the broad services sector underpinned growth.

GDP was up one per cent on the same quarter a year ago.

The economy is nearly five per cent bigger than before the start of the pandemic, similar to Australia and ahead of the US, EU, UK and Canada.

'This is a positive result and underlines the resilience of the economy. Our strong growth in the June quarter comes at a time the IMF estimated that global output shrank,” says Finance Minister Grant Robertson.

'We're targeting investment to give New Zealanders greater economic security. Our economic plan is working in what continues to be an extremely challenging global environment. More people are in work, wages are outpacing inflation and our economy is stronger that it was before the pandemic started, while the Government's books are in good shape.”

On an annual basis, economic activity was one per cent higher than the previous year. The size of the economy was $360 billion.

'The services sector, which makes up two-thirds of the economy, rose 2.7 per cent as New Zealanders and returning overseas visitors spent more on transport, accommodation, eating out and sports and recreational activities. Exports jumped 20.5 per cent, boosted by the return of tourists.

'As we move into this new phase and away from the emergency Covid-19 settings, our economy is 5 percent larger than it was before the start of the pandemic. This means we are well placed to hit the ground running and take the opportunities available to New Zealand's economy from our strong pandemic response.

'New Zealand is well positioned to respond to the challenges ahead. The global economic outlook is being revised downwards as high inflation, the war in Ukraine and ongoing pandemic-related disruptions continue to affect the countries we trade with.

'We are not immune to what happens beyond our borders, but we start on the front foot and with optimism. We produce goods and services that the world demands and our ongoing investment in a low carbon future reduces our reliance on volatile global energy markets and attracts people and investment.

'We are continuing to focus on lifting New Zealanders up and giving them greater economic security. We are investing in supporting businesses to grow jobs and wages which will make families and our economy stronger.

”We are also prepared for what the world may throw at us and continuing to prioritise our spending and investing where it is needed most. We are keeping a lid on debt and making important investments in our future to deliver a high wage, low emissions economy that provides greater security in good times and bad. Some tough choices, however, may be required as we navigate our way through a volatile and uncertain global environment.'