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‘GDP decline reinforces Government’s fiscal plan’ – Willis

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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 says.

“The 0.1 percent 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.

“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 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 percent 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,” said Willis.

Image credit: Unsplash+

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6 COMMENTS

  1. Bull****. For one thing inflation has eroded the value of incomes, the buying power of any given salary has been reduced over the years. No helped at all by poor employment law that can be laid at National and Labours feet aided and abetted by importing cheap labour rather than paying local Kiwis a decent salary.

    As for tax cuts anyone in the Nats care to explain the Labour taxes on trusts and the one line digital tax that will see people who own AirBNB rentals paying GST for dollar one as opposed to the $60K threshold still being introduced under National??? Not to mention retaining CGT (euphemistically called the “Brightline” test). Any so called tax cuts are being given with one hand and snatched back, with the other.

    This is what happens when you vote out one lot of neo liberal globalists and vote in another, New Zealand.

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