Source: New Zealand Parliament – Hansard
Question No. 2—Finance
2. BARBARA EDMONDS (Labour—Mana) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?
Hon GRANT ROBERTSON (Minister of Finance): The exports sector continues to drive economic growth in New Zealand. Statistics New Zealand reported in early February the export of goods in December rose by 13 percent to a new monthly high of $6.1 billion, compared with the same period a year ago. Dairy products—milk powder, butter, and cheese—again lead the way, and I acknowledge the important role—
Hon Member: Thank the farmers.
Hon GRANT ROBERTSON: There you are!—that that industry plays in New Zealand. The meat sector also saw sales rise 19 percent to $879 million. On an annual basis, exports are up 5.6 percent from the previous year to $63.2 billion. I’d like to thank our exporters for contributing strongly to the economy during what is a volatile environment.
Barbara Edmonds: What else did the report show on trade and its impact on confidence in the economy?
Hon GRANT ROBERTSON: The overseas merchandise trade figures show that businesses do appear confident to be investing more in the economy and in New Zealand’s recovery. Imports of machinery and plant rose 18 percent to $905 million in December, compared with the same month a year earlier. For the December quarter, imports of machinery and plant rose 31 percent to $2.8 billion for the year. The same imports rose 20 percent to $9.8 billion. Despite the uncertainty around the pandemic, the New Zealand economy does remain resilient.
Barbara Edmonds: What other reports has he seen on the economy?
Hon GRANT ROBERTSON: Statistics New Zealand did release their food price index yesterday. It did show that prices rose 2.7 percent in January, the largest monthly rise in five years. On a seasonally adjusted basis, overall food prices rose 1.1 percent. This annual increase that we’ve seen is the largest since August 2011, when prices rose by 6.6 percent. The environment does remain volatile with COVID-19 disruptions pushing up prices globally for food and other products, such as fuel. We do acknowledge the rise of cost of living is challenging for New Zealanders, and that is why we have supported people through the pandemic to protect their jobs and livelihoods, and taken actions to lift the incomes of the lowest-income New Zealanders, including benefit increases and minimum wages increases—both of which were opposed by the Opposition.
