GDP Growth And Low Unemployment Show Strength Of NZ Economy

Today's 5.6% annual GDP growth, the fastest rate since June 2000, shows the resilience of the New Zealand economy, says CTU economist Craig Renney.

"Together with record low unemployment data, the economy appears to have weathered the Alpha and Delta phases of the COVID-19 outbreak in better shape than many of our international peers. It also demonstrates the value of the support provided to the economy during that period.

"On a per capita basis, NZ GDP growth increased by 5%, with growth registered in 13 out of 16 sectors of the economy. Growth was particularly strong in construction, wholesale trade, and retail & accommodation. Public administration grew at a slower rate than growth in the economy overall. Business investment grew by 14.2% annually, and household consumption on durable goods rose 8%.

"With the latest Crown accounts showing that net core Crown debt is lower than forecast, the Government is well-positioned to support the economy if further help is needed. The CTU believes that now is the time to be making the longer-term investments in the economy that will embed that low unemployment rate and create sustainable growth.

"Now is not the time to be using that position to undo the good work to date by cutting essential spending, or by increasing inequality through unfocussed tax cuts."

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