IMF figures show NZ economy falling behind Australia


The latest IMF report shows New Zealand’s GDP is falling at a much faster rate than Australia’s, with the difference in growth costing the New Zealand economy $8 billion this year, National’s Finance spokesperson Paul Goldsmith says.

“Australia’s economy is expected to fall by just 4.5 per cent, making it one of the best performers globally in this crisis. New Zealand, meanwhile, is falling by 7.2 per cent over 2020 according to the IMF.

“If New Zealand was doing as well as Australia, the average household in New Zealand would be around $4,500 better off this year.

“Recently released OECD figures showed New Zealand will be one of the most heavily affected countries, in terms of lost national income and jobs. And our GDP fell 1.6 per cent in the three months to March, mostly before the Covid crisis, while Australia’s only fell 0.3 per cent.

“These figures show that not only is Australia doing a better job at managing the border, they are doing a better job at managing the economy.

“New Zealand had huge advantages in terms of isolation, distance and a small population - yet due to the Government’s clumsy and incompetent policy settings, is seeing a worse economic outcome than most.   

“This week’s border bungles will slow our economic recovery and cost jobs.

“The Government has failed to deliver the border security they promised. Labour cannot deliver for New Zealanders.

“New Zealand needs a coherent economic plan that will help create jobs, not Labour’s debt-fuelled spending. National has the team and the ability to deliver for Kiwis.”