Source: NZCTU Te Kauae Kaimahi
NZCTU Te Kauae Kaimahi Economist Craig Renney is saying that new GDP data released by Statistics New Zealand demonstrates the scale of the problems in the economy, and the desperate need for economic policy change.
“The economy fell 0.9% last quarter. The Reserve Bank forecast a 0.3% fall, and the Treasury had previously forecast a 0.7% increase. Together with recent poor labour market data, it’s clear that the government’s approach is not working,” said Renney.
“GDP fell in 10 out of 16 industry sectors. Manufacturing fell 3.5% in just three months, and mining was down 4.1%. Retail trade fell, and financial services fell. Business services fell. Healthcare and social assistance fell. Agriculture, forestry, and fishing fell.
“Across the past 15 months, the economy has been in decline for 9 of them. This isn’t due to one-off factors such as tariffs – this is an economy with no plan and no direction.
“Quarterly GDP per capita fell back into the red again and is now lower than it was in 2021, even after adjusting for inflation. Business investment fell in plant, machinery, and transport equipment. Residential construction fell 1.9% this quarter. The indicators that might support growth in the future are falling.
“We have consistently called for the government to change track on the economy. For action on rising unemployment. For action on investment in crumbling public services.
“This latest GDP data confirms the Government’s approach has failed. This should be a wake-up call that tax cuts and public service cuts aren’t delivering the economy that New Zealanders deserve or need,” said Renney.
