Source: NZCTU
GDP data released by StatsNZ today showed that the economy grew at an annual rate of 0.8 percent.
New Zealand Council of Trade Unions Te Kauae Kaimahi President Sandra Grey says this data is likely to be the high-water mark before the full impacts of the conflict in the Gulf have been registered.
“This growth was in line with the forecast from the Reserve Bank, who now expects growth to be lower from here. Growth is anaemic, and together with high unemployment and low consumer confidence, paints a picture of an economy that is still in huge trouble,” says Grey.
“The economy grew in manufacturing this quarter, but annual manufacturing data is lower than a year ago (-0.7 percent). Real residential construction data was down -4.5 percent annually. Real output in construction is now 20 percent lower than it was in 2023. Total business investment is lower than it was two years ago in real terms. The private sector hasn’t invested in an economy that has seen little to no growth, and fewer customers.
“Annual real GDP per capita was flat, and it is still well behind where we were a few years ago. Annual real GDP per person is $1,447 lower than it was in 2023. Working people certainly aren’t benefitting, with compensation of employees (wages and salaries) falling in real terms, meaning that the total wage bill of the country is going backwards. The working people’s share of the economy has declined now for two straight years. Meanwhile, the broad measure of profits saw a 6.9 percent annual average increase in this data.
“This data shows what the Government’s growth strategy actually means. Over the past two years the economy has grown by $2.38m a day in real terms. In the two years between 2021 and 2023 it saw real growth of $31.1m a day. Wages are falling, more and more people are unemployed. The data is showing us that you can’t cut your way to prosperity. Annual growth in New Zealand is lower than Australia and the OECD average. Our economy needs a new approach,” says Grey.
Original source: https://nz.mil-osi.com/2026/06/18/gdp-growth-anaemic-and-masks-economy-still-in-huge-trouble-says-nzctu/