New Zealand's economy is stabilising, but there is a lot of work to do if we are to have a strong recovery that leads to sustainable jobs and growth, Finance Minister Bill English says.

GDP data shows the economy grew 0.1 percent in the June quarter following five quarters of contraction. The growth was based on a better than expected performance from primary industry exports, in particular forestry and logging.

"While growth for the June quarter is only marginally positive and could still be revised downwards, it shows the economy is through the bottom of the trough and is stabilising," Mr English says.

"However for most people the real measure of recession is unemployment, which is expected to keep rising for some time yet.

"This Government is concerned about the loss of any job. That is why we put in place a rolling maul of initiatives that are supporting thousands of jobs around the country.

"However the real challenge is to achieve sustainable jobs and economic growth in the longer-term.

"Much of New Zealand's growth in recent years was based on a diet of consumer debt and Government spending. This has left us with serious structural imbalances and an underpowered export sector.

"That is why we have set out a comprehensive programme to rebalance our economy around exports and investment.

"To climb back up the world income ladder we need businesses to have the confidence to invest and create jobs. The Government's role is to make that as easy for them as possible.

"A return to the unbalanced growth of recent years could ultimately lead us back to where we are now. That is why we are focused on a recovery built on increased productivity, business investment and exports," Mr English says.