Despite fears of a slowdown, New Zealand’s economy has performed creditably over the last three months.

The National Bank reports that economic activity grew 1.1 percent during the last three months, or 4.4 percent annualised. Urban and rural New Zealand shared the same rise.

Of the country’s 14 regions, 12 grew in the last three months. The two regions slipping were Gisborne and Southland.

High oil prices pushed Taranaki, where New Zealand’s oil and gas industry is based, to first place in the economic growth league. Not surprisingly, Taranaki also had the highest level of business confidence of New Zealand’s regions. (Nelson-Marlborough had the lowest business confidence.)

Growth in Canterbury was higher than the national average for the fourth quarter in a row. Auckland, however, continued at a slower pace, lagging now for four quarters.

Consumer confidence fell in every region except for Otago, which is now the most confident region, just ahead of Wellington.

A number of economists now believe that continued growth depends on the housing market. If house prices fall, economic growth may slow from around four percent to around two percent.

House prices increased by over 12 percent between April 2004 and April 2005 but, causing some concern, the number of houses sold was the lowest in any April since 2001.