Saturday, July 20, 2024

GDP decline reinforces Govt fiscal plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis said today.

“The 0.1% decline in GDP for the December quarter shows our economy slowed earlier and at a faster rate than previously thought. This is a deep hangover from the big spending, big taxing period under the previous government,” said Ms Willis.

“High inflation is now being beaten back by high interest rates, but this has a crushing flow-on impact on growth.

“It is concerning that we are in recession even despite our rapidly growing population. This simply reinforces that our approach to strengthening and growing the economy is the right one.”

The Minister said the good news is that inflation is tracking in the right direction.

“Last week we saw the price of fresh fruit and produce drop by 9.3% which certainly helps Kiwi families who have been pulling in their belts across the board.”

“Kiwis can also look forward to keeping more of their own money. This year’s Budget will deliver responsible fully-funded tax relief, while ensuring new spending is prioritised towards essential frontline services.

“This Government knows a strong economy determines our standard of living, job and business opportunities, and the quality of public services.

“We’re focused on rebuilding our economy after years of economic mismanagement,” Minister Willis said.

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