Nominal GDP grew by 3.6 percent in the year to June 2019, resulting in annual nominal GDP reaching $300 billion for the first time. Real activity was supported by population growth, with New Zealand's population growing 1.6 percent in the year to June. Both nominal private and general Government consumption expanded by 5 percent in the year, while residential investment increased by 7.9 percent. Nominal business investment growth slowed to 2.9 percent. Consumer spending has been supported by higher wage growth, with average hourly earnings increasing 3.5 percent in the year. The Budget forecasts included an acceleration of real GDP growth to around 3 percent. Recent indicators and developments both domestically and abroad suggest that GDP growth is more likely to move significantly lower over this year. 