Today's GDP figures historical already

Media statement Friday, September 26th, 2008

Today's GDP figures historical already

A lot has happened in global and domestic markets since the decline in GDP recorded to June 2008 released today, the Employers & Manufacturers Association (Northern) says.

"Costs are continuing up since then, demand is down, so margins are tightening, leading to increased workplace restructuring and staff layoffs," said Alasdair Thompson, EMA's chief executive.

"About 25 per cent of EMA's employment advice work is now about restructuring, downsizing, and redundancy, and the proportion is rising.

"The compliance and direct cost impact of the government's re-regulation of the economy over the past few years is coming home to roost.

"The cost of components, raw material commodities, fuel, freight and additional labour costs are offsetting slowly improving returns from exports as the NZ dollar sinks.

"Improved growth prospects and higher income can only be restored by a substantial rise in investment by business, and that outcome will depend on a sound business environment and access to credit on favourable terms."

ENDS

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