Milk does the New Zealand economy good
Milk production is driving GDP growth in New Zealand.
New Zealand's economy boomed in the first quarter, thanks to increases in food manufacturing and milk production, Reuters said.
New Zealand's gross domestic product was up 1.1 percent to nearly $35 billion during the quarter. That's the highest it's been in five years and twice as high as economists had been expecting.
"Good growing conditions have been a major factor in the growth this quarter, and are reflected in both the milk production in agriculture and in meat and dairy manufacturing," Sky News Australia quoted New Zealand accounts manager Rachael Milicich as saying.
The strong report sent the Kiwi dollar toward a seven-week high and cut the chances of a central bank interest rate cut, Brisbane TImes said. The paper warned that New Zealand's good times may be short lived should commodity prices continue sliding and the European debt crisis continue unabated.
New Zealand's key interest rate already is at a record-low 2.5 percent.
New Zealand also is apparently the world's largest dairy exporter, according to AFP.
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