Today’s release of GDP data is more bad news for New Zealanders already struggling with the cost of living crisis, National’s Finance spokesperson Nicola Willis says.

Gross Domestic Product data released today by Statistics New Zealand shows our economy shrunk by 0.2 per cent in the first three months of this year.

“Despite the Finance Minister’s claims of a strong economy, today’s data confirms the New Zealand economy failed to grow in the first part of the year, with output reducing by 0.2 per cent.

“The economic picture was already dark with record-high inflation, rapidly rising interest rates and wages falling behind, and today’s figures prove the toll that is taking across the country.

“New Zealanders are straining under the cost of living crisis as prices run laps around wages, with Kiwis going backwards more and more each week.

“Businesses are fighting against major skills shortages, desperate for workers and facing increased costs everywhere they look.

“With inflation roaring, rising interest rates are set to hit New Zealanders harder in the coming months.

“The risks for families and businesses are serious. The Government must front-up to the reality of New Zealand’s economic situation, set out a plan to address inflation and drive productive growth.

“To date the Government’s only response has been to spend more money to paper over its failures and to dream up new taxes to pay for it.

“A National Government would be laser focused on removing bottlenecks in our economy – improving immigration pathways, eliminating deadweight regulations, and ending plans for new taxes.”

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