A boom in forestry exports led to New Zealand economy's strongest quarterly growth in three years after a fast finishing 1.5 per cent surge for 2012's final quarter.

Figures released by Statistic New Zealand today show Gross Domestic Product (GDP) rose 1.5 per cent to $36.81 billion in the December 2012 quarter from a slow 0.2 per cent September period.

A 13-year quarterly rise high for the forestry industry helped GDP increase 1.5 per cent in the final quarter of 2012.

Statistics New Zealand national accounts manager Rachel Milicich says the broad-based nature of growth in the tail-end of last year is reflected by record increases in 15 of the 16 industries.

Industries to have the biggest growth contributions include a 13-year quarterly rise high for forestry helping the sector along with agriculture and fishing increase 2.6 per cent, retail trade and accommodation up 2.3 per cent and wholesale trade rising 2.1 per cent.

The late surge helped the economy grow at an annual pace of 2.5 per cent, the highest annual growth in GDP since March 2008 when the economic recession began.

GDP expenditure measures, showing the final purchases of locally produced goods and services, increased 1.4 per cent on the back of household expenditure and investment in fixed assets recording a 3 per cent annual rise.

Household consumption recorded its biggest jump in six years, increasing 1.6 per cent in the quarter while fixed assets rose 2.2 per cent, with increased investment in plant, machinery, and equipment, and infrastructure construction.

Gross fixed capital formation, made up of business investment and residential building investment, grew 6.6 per cent annually following a 2.2 per cent in the December quarter, with a 2 per cent gain in residential investment and a 2.2 per cent lift in business investment.