The phases include contraction, trough, expansion and peak. Currently, New Zealand's economy is in an expansion phase. The expansion phase is characterized by economic growth and expansion as well as positive GDP. In the second quarter of 2015, the New Zealand economy recorded positive growth following the recovery of the agricultural and mining sectors. GDP in the second quarter of 2015 increased by 0.4 percent (“The Economy Continues to Grow,” 2015). Additionally, household spending increased by 0.9 percent while business investment increased by 2.2 percent. On an annual basis, GDP grew by 2.5 percent, implying that the New Zealand economy is slowly recovering from recession (Hall and McDermott,