Source: ACT Party
Responding to the latest GDP figures from Stats NZ,
We’re technically out of recession, largely thanks to the efforts of our primary sector which grew 1.3% in the last year. Thank god for the farmers and miners. But economic activity on a per-person basis is down, so the typical household won’t feel better off.
Instead of hitting the shops, families are knuckling down and frankly doing the responsible thing: skipping non-essential purchases, looking for bargains, and servicing debts. That’s a sensible reaction to a cost-of-living crisis.
New Zealanders deserve a government as responsible as Kiwi households are. That means avoiding temptation to borrow and spend ever more while Wellington’s own interest payments spike.
One subsector that’s grown faster than others is ‘public administration’, which grew 5.1 per cent. That growth took place in the first three quarters, but now it’s started shrinking since we’ve been in Government.
This is good news, because spending in Wellington on dubious projects was a big reason we ended up with the dark clouds of inflation and high interest rates voters have now tasked us with cleaning up.
With ACT in government, we’re facing reality head-on, making tough decisions just like your family does. In the Budget we offered modest tax relief, but the bigger story was the hundreds of millions in savings we delivered, and must continue to deliver, while still funding essential frontline services.
This long winter will make way for spring. Inflation, while still high, is tracking down. And so long as we stay the course together, interest rates will come down too.
That’s how we leave you with more in your pocket to spend on the services that help you and your family flourish. That’s how we give businesses the confidence to employ, invest, and put value into your community. That’s how we let in the sunlight of real growth and real prosperity, where we can afford the world-class public services that New Zealanders deserve.
