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

Open Source // Open Society - Full Coverage

Gordon Campbell:
On The Reserve Bank And Auckland Housing

The ‘crisis – what crisis?’ response by the government to the Auckland housing price bubble is no longer acceptable.

So says Reserve Bank governor Grant Spencer – who used unusually frank language in his speech and subsequent interviews yesterday to call for a capital gains tax, and to generally chastise central and local government for their inaction on a threat to the country’s economic health and financial stability.

That threat has been real for some time. The housing price bubble has already created a currency bubble... Undaunted, the government keeps calling this situation a success story. More>>

 

PARLIAMENT TODAY:

Bangladesh: GCSB Dragging NZ Into Human Rights Abuses

The New Zealand government should stop providing intelligence assistance to Bangladeshi security agencies that are known to systematically engage in human rights abuses, said the Green Party today. More>>

ALSO:

Troops Heading To Iraq: Government Must Come Clean On Deployment

New Zealanders deserve more than to hear about their troops’ deployment overseas from Australian media, Opposition Leader Andrew Little says. “News from Australia that Kiwi troops are on their way to Iraq this week is another example of the culture of secrecy and unknown protections around the deployment.” More>>

ALSO:

Image: Strikers And Protestors Join Outside McDonald's

A group of protestors took to McDonald’s Manners St today as a part of the international fast food workers day of action to end zero hour contracts. More>>

ALSO:

Greens: Special Education Funds Not Spent

More than $32 million of funding for children with special needs has not been spent by the Government, despite families of children with special needs complaining for years that they’ve been denied the support they deserve. More>>

ALSO:

John Key: Pre-Budget Speech To Business NZ

So this Government will remain relentlessly focused on improving the competitiveness of our economy... We will continue to give businesses a platform to invest, grow and create jobs in the knowledge they will be backed by a clear and consistent government policy programme. More>>

ALSO:

Multimedia: Andrew Little’s Response To John Key’s Pre-Budget Address

Labour Party leader Andrew Little spoke today on John Key’s pre-budget address this afternoon in Wellington. Little said National has had seven years to achieve a surplus and Kiwis have “fufilled their end of the bargain.” More>>

Surplus Baggage: Key Backs Off ‘Artificial Target’

John Key’s attempt to redefine his cornerstone promise of two election campaigns as an artificial target suggests his other promises are works of fiction, says Labour’s Finance spokesperson Grant Robertson. More>>

ALSO:

Gordon Campbell: On UE Pass Rates And University Dropout Rates

Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been especially steep among Maori students and also a problem with (b) the failure rates for Maori students among those who reach university... Unfortunately the two problems seem related. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news