GDP increase welcome, but many areas of concern

Wednesday, 23 December 2009, 11:56 am
Press Release: New Zealand Council of Trade Unions

GDP increase welcome, but many areas of concern continue

Another small increase in GDP (0.2 percent) in the three months to September is welcome but it does not allay concern at the state of manufacturing and construction, and the prospects of continuing unacceptable levels of unemployment for some years, said CTU Economist and Policy Director Bill Rosenberg today.

“Manufacturing production fell a further 1.9 percent in the quarter, 11.9 percent from the same quarter last year, and is now down to June 1999 levels,” said Rosenberg. “Construction fell 4.4 percent, and residential building investment had its eighth consecutive quarter of falling production. Business investment is weak and still declining.”

“We remain concerned at the prospects for unemployment for at least the next two to three years. Treasury forecasts last week were for 7.0 percent unemployment in 2010, 6.9 percent in 2011 and 6.0 percent in 2012. Private sector consensus forecasts are even higher.”

ENDS

© Scoop Media

New Zealand Council of Trade Unions

Te Kauae Kaimahi

The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.

Contact New Zealand Council of Trade Unions

• Website - union.org.nz/
• Media Contact - communications@nzctu.org.nz
• Phone - +64 4 385 1334
• Facebook
• YouTube
• Twitter - @togetherunionnz
• Physical Address - Level 3, 79 Boulcott Street, Wellington.
• Postal Address - PO Box 6645, Marion Square, Wellington 6141.