24 The New Zealand economy was growing strongly: the terms of trade had reached their highest level in 40 years; construction activity was robust; immigration was boosting housing and consumer demand; and monetary policy was providing substantial stimulus to the economy.
As a result, the rise in the poverty rate halted in 2006, based on the relative measure of poverty (which relates  BIS Review 151/2007  1  mainly to income differentials); based on the absolute measure of poverty (with relates to the ability to purchase a basket of basic goods), poverty actually declined in 2005 and 2006.