Grant Robertson
Finance Spokesperson

21 October 2015

Per person New Zealand is getting poorer

The New Zealand economy is not keeping up with a migration boom, leaving Kiwis poorer individually since the election, Labour’s Finance spokesperson Grant Robertson says.

“For the first six months of this year GDP per capita has been negative and is the worse we have seen since 2011. In September 2014 it was $11,931. According to migration statistics released today in June 2015 GDP per capita was $11,924.

“Simply, the economy is not keeping pace with migration, making us less productive. This is only likely to get worse with Treasury forecasting that growth may slip below 2 per cent.

“It will lead to lower wages and fewer job opportunities. It’s lose-lose for New Zealand.

“National’s economy has been propped up by the Canterbury rebuild, migration and dairy prices. Two of those have come off the boil, leaving only migration.

“While record migration may seem like a good story, it’s only good if the economy can handle it. Auckland builders can’t meet demand and high levels of migration are fuelling skyrocketing house prices. With unemployment rising and per capita GDP declining the economy isn’t handling it either.

“The question National needs to answer is who the economy is meant to be working for. Whatever spin they put on it, the fact that 148,000 New Zealanders are still unemployed is nothing to celebrate.

“Now is the time for National to recognise that they can’t simply outsource the management of the economy to the Reserve Bank. They need to be investing now in infrastructure and support regions and businesses that will create jobs and meaningful growth,” Grant Robertson says

ENDS

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