New Zealand's economy grew more slowly than expected in the three months to September, in the second straight quarter of sluggish growth after a long recession, official figures showed Wednesday. The 0.2 percent growth in the quarter followed a revised 0.2 percent rise in gross domestic product (GDP) in the three months to June, which ended five consecutive quarters of contraction, Statistics New Zealand said. Gross domestic product shrank 1.3 percent year on year, the figures showed. The 0.2 percent growth was lower than economists' expectations of around 0.3 percent and the central bank's 0.4 percent forecast. 'The economy continued to grow slowly in the September 2009 quarter, and the picture across industries was mixed,' said Statistics New Zealand national accounts manager Rachael Milicich. 'On the production side of the economy, mining and business services showed the largest increases.' Finance Minister Bill English said the figures were positive news, despite the weak growth. 'However the recovery remains fragile and any further problems abroad could weaken our growth prospects,' English said. 'That is why it is critical we improve the competitiveness of our exporters and address structural imbalances in our economy.' The New Zealand dollar fell, partly on talk the central bank would not rush to raise interest rates due to the muted growth. At the close of local trading, the New Zealand dollar was at 69.99 US cents, down from 70.32 at the same time Tuesday. Westpac Bank chief economist Brendan O'Donovan said the figures showed strong growth in agriculture, but continuing declines in manufacturing, construction and wholesale trade. 'We think significantly stronger growth in Q4 and beyond, combined with the earlier-than-expected return of the consumer, suggest the first hike in interest rates will come relatively early in the new year,' O'Donovan said. The central bank has said the official interest rate -- at a record low 2.5 percent -- could start rising from mid-2010 but O'Donovan said the first rise could come as soon as March. 