WELLINGTON (Reuters) - New Zealand's gross domestic product (GDP) jumped in the second quarter, data showed on Thursday, but the annual growth was steady as the country faces some economic headwinds.
Seasonally adjusted GDP rose 0.8 percent in the three months to the end of June, Statistics New Zealand said, up from a revised 0.6 percent the previous quarter.
The growth was in line with analysts' expectations, and left annual GDP unchanged at 2.5 percent.
The results were particularly closely watched just days before the polls open on Saturday in a hotly contested general election in which the economy has been a dominant issue. [nL4N1M12FU]
Thursday's outcome is unlikely to divert the Reserve Bank of New Zealand from its firm path of keeping rates on hold at record lows of 1.75 percent for years to stoke inflation.
New Zealand's economic growth has been the envy of the developed world in recent years, often above 3 percent, but it encountered headwinds towards the end of 2016.
As in the previous quarter, the construction sector dragged on growth, falling 1.1 percent. The sector has been struggling with a labor shortage and rising costs.
"We expected the June quarter to mark the high point for growth this year, given the one-off boost from tourism and a rebound in agriculture and transport," Michael Gordon, senior economist at Westpac Bank, said in a research note.
"In that light, a 0.8 percent quarterly rise is not that impressive," he said.
The quarterly jump was largely due to a flurry of spending as tourists flooded the country for international sporting events, which pushed retail spending and accommodation up 2.8 percent. [nL4N1KZ0K6]
GDP expenditure also grew 1.1 percent in the June quarter, largely due to exports rising on stronger prices for dairy, the country's largest goods export.
The New Zealand dollar edged down to $0.7350 from $0.7364 after the data was released, though currency strategists said the market impact was likely to be relatively muted.