Labour claims economy has shrunk under Coalition

Labour has accused the Government of failing to deliver economic growth, claiming the economy is now smaller than it was when Prime Minister Christopher Luxon took office.

Labour’s finance and economy spokesperson Barbara Edmonds said new data showed the economy had contracted over the past year and had not grown at all since National formed the Government. She said this contradicted repeated assurances from Luxon that the economy was improving.

Edmonds said many New Zealanders were feeling worse off, with rising grocery prices, higher living costs and increased pressure on household budgets. She also pointed to the cost of healthcare, saying it had become more expensive for families to see a doctor.

She argued governments should be judged on whether living standards are improving, and said the latest figures confirmed what many people were already experiencing in their day-to-day lives.

Edmonds rejected claims the economy was “turning a corner”, saying any recovery was benefiting only a small number of people rather than most households.

“Christopher Luxon has no idea what life is like for most New Zealanders.

“So, when he stands up and says, ‘the economy is turning a corner,’ let’s be clear about what he really means: the economy is working for a few – not for the rest of New Zealand.”

She said Labour would focus on jobs, housing, health and reducing the cost of living, arguing New Zealanders could not afford another term under National.

Image credit: Towfiqu Barbhuiya