Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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


GDP Numbers Provide Reasons For Investment, Not Cuts

GDP numbers provided by Stats NZ today demonstrated that the size of the economy fell by 0.3% in September 2023.

NZCTU Economist Craig Renney said “this data is much weaker than had been expected by commentators, and should give decision-makers food for thought. If growth is weakening, additional interest rate increases should be even further from consideration. The coalition Government should also be making sure that it has support for workers and communities ready should unemployment rise quickly as well.

“This data shows worrying signs that important parts of the economy have stalled. Manufacturing (-3.4%), mining (-1.8%), food production (-2.4%), construction (-1.7%), and transportation (-4.5%) all saw significant falls in output this quarter. Goods-producing industries saw their output fall 2.6%.” GDP per capita fell 0.9% in September, demonstrating that GDP figures may have been worse were it not for the impact of population growth.

“Now is not the time for tax cuts that will simply stoke house prices in the housing market and add little value to the real economy. Instead, government can act to counterbalance the impact of this downturn through investment in tackling our chronic infrastructure gap. That would not only have the benefit of making New Zealand a better place to live, it would also support future economic growth.

“GDP data shows weakness in both the consumer pockets, with household spending being down 0.6%. In particular, spending on durable goods (like household appliances) fell by 3.2%.

“This is indicative of households feeling worried about the future, particularly about their employment security. The government should be showing how it is going to support economic demand over the next few months, rather than taking it away through cuts and removing employment protections.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Perils Of Joining AUKUS Pillar Two

The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...


Government: Backs Police To Crackdown On Gangs
The coalition Government is restoring law and order by providing police new tools to crack down on criminal gangs, says Justice Minister Paul Goldsmith and Police Minister Mark Mitchell. “Over the last five years gangs have recruited more than 3000 members, a 51 per cent increase... More

Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More

Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.