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

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news