Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


GDP figures reveal shrinking tradable sector

21 March 2013

GDP figures reveal shrinking tradable sector

Increased economic activity in the final quarter of 2012 is not the good news story the Government is painting with economic activity in the tradable sector of the economy actually declining, the Green Party said today.

Parliamentary Library analysis of the December 2012 GDP statistics released today show that tradable GDP fell 0.6 percent in the December 2012 quarter, while non-tradable GDP rose 2.3 percent resulting in the overall increase of 1.5%.

“Increased economic activity in the December quarter was led by strong growth in the non-tradable sectors such as construction and retail,” said Green Party Co-leader Dr Russel Norman.

“However, the tradable sector went backwards in December.

“The tradable sector of our economy is the sector that enables us to earn our way in the world. Under National’s economic management, the tradable sector shrunk this quarter.

“A shrinking tradable sector combined with a strongly growing non-tradable sector means only one thing – increased borrowing and a ballooning current account deficit.

“This is exactly the kind of economic recovery that makes us vulnerable to larger shocks in the longer term.

“Bill English used to once worry about economic rebalancing. Now he’s content to take any kind of growth, even if it’s growth fuelled by increasing foreign indebtedness and foreign ownership of our economy.”

Dr Norman was concerned that National’s complacency over the quality of economic growth was repeating all the same mistakes of the previous Labour Government’s.

“National is revisiting the sins of the previous Labour Government by letting housing get out of control. At the same time, they are ignoring the fact that the tradable sector is becoming less diverse and adding less value.

“When this happened in the mid-2000s, it was a tragedy; this time it is a farce.

“If we look at the increased activity in the tradable sector, we see a growing reliance on a couple of export commodities – milk powder and raw logs. This is not a resilient, high-value export strategy.

“Even in a ‘strong’ quarter, the manufacturing sector still failed to grow.

“Manufacturing is a key sector for driving high, value-added exports and creating well-paid jobs. Under National, manufacturing has continued to contract, shedding 17,000 jobs in the last year alone.

“The Manufacturing Inquiry is timely and we hope the National Government will use our findings to help address the growing imbalances in our economy.”

Parliamentary Library graph:


Click for big version.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Anzac Day:


Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence.

The changes follow the resignations from Cabinet of Hekia Parata and Murray McCully.

In other changes Simon Bridges has been appointed Leader of the House and Nicky Wagner has been made Minister supporting Greater Christchurch Regeneration. More>>

 

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Health Workers Respond: People's Mental Health Report Released

The People's Mental Health Review reinforces a recent YesWeCare.nz survey of 6,000 health workers, which found nine in 10 believe they don't have the staff or resources to deliver the care Kiwis need when they need it. More>>

ALSO:

More Mental Health:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Gordon Campbell: On The Aged-Care Settlement

Until yesterday, a National government has always been the sworn enemy of women seeking justice in the workplace, in the face of gender-based pay discrimination. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news