Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

GDP falls - Government needs to rethink

Council of Trade Unions media release
23 December 2010

GDP falls - Government needs to rethink

GDP figures published today are at the low end of expectations and show the economy is at risk of re-entering recession, said the CTU. The economy’s production measured by GDP fell by 0.2 percent in September. Measured by expenditure, GDP fell 0.4 percent.

“At the very least, this reinforces our fears for continued high unemployment,” said Bill Rosenberg, CTU Economist. “The government needs to rethink its strategy of holding government spending and focusing on debt rather than continuing stimulation and assistance to the economy.”

“Not only is the economy faltering, but the government’s aim of growth in the tradable sector of the economy (exports and import substitutes) is also failing. Agriculture and goods-producing industries including manufacturing are both in recession if measured by two consecutive quarters of contraction. Forestry was the only primary industry to grow in this quarter and even there, exports fell.

“Essentially, the economy has been kept going by the services sector. A strong services sector is not a bad thing in itself, but it shows that any export-led recovery has weakened with the high dollar and recent strong agricultural and forestry exports peaking. Business investment has stopped growing. Much more direct involvement in the economy is needed to assist industry to revive and provide jobs.”

Output per person has fallen even more than GDP. While production fell by 0.2 percent in the quarter, production per capita fell by 0.4 percent.

The Canterbury earthquake in September will have affected the results this quarter, though Statistics New Zealand was unable to estimate how much. The rebuilding will boost GDP next year. “But the government cannot continue the strategy of government expenditure cuts, changing the rules and hoping recovery will look after itself,” said Rosenberg.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Now-Former Cyclone: States of Emergency Declared

A state of emergency has been declared in Buller, Greymouth and Christchurch, with fears some homes are at a high risk of flooding over the next day.

High tides overnight were likely to bring large waves to Kaikōura and Christchurch about 9pm, and to Taranaki, Kāpiti and Nelson about 2am.

The latest severe weather update has upgraded watches for heavy rain in Christchurch, Banks Peninsula and North Otago to full warnings...More>>

 
 

Kauri Protection: Waitākere Forest Closure Proposed

At the 20 February meeting of the Environment and Community Committee, the council proposed to close the forested areas of the Waitākere Ranges Regional Park, with some exceptions, by 1 May 2018. More>>

ALSO:

'Hit And Run' Raid: NZDF Had Reports Of Civilian Casualties

The NZDF received intelligence updates within one or two days of the August 2010 SAS raid in Afghanistan that reported civilian casualties, including the death of a child, new OIA documents reveal... it appears they did not bother to investigate nor made any effort to help the victims. More>>

ALSO:

Christchurch Public Meeting: Complete U-Turn By Labour And NZ First On TPP

The TPP might have been re-branded as the CPTPP but it's still the same bad deal says Professor Jane Kelsey, New Zealand's expert on international economic regulation. More>>

ALSO:

Commerce, Etc: Thicker Bright Line For Real Estate

Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years in legislation currently making its way through Parliament.More>>

ALSO:

Prison Inspections: Reports on Manawatu and Paremoremo Released

The Office of the Inspectorate today released reports into Manawatu Prison and Auckland Prison (Paremoremo), the first two resulting from a programme of inspections of New Zealand prisons. More>>

Whistle Blowers: Government To Review Law On Protection

Work has begun on a review of the Protected Disclosures Act 2000, Minister of State Services Chris Hipkins said today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages