Falling annual economic growth at a time of high inflation means Kiwi households are going backwards under Labour, National’s Finance spokesperson Nicola Willis says.

“Official figures from Statistics New Zealand show the economy grew by only 1 per cent in the year to June 30. Annual growth is much lower than Australia and many of the other countries New Zealand typically measures itself against.

“While it is welcome that New Zealand has so far avoided a recession, weak growth comes as inflation remains at the highest rate in a generation, with the consumer price index rising at 7.3 per cent over the same period.

“In the year to August 31, food prices rose by 8.3 per cent, the highest in 13 years, suggesting inflation is becoming more and more embedded in New Zealand.

“The economy is not growing enough to boost household incomes. Real wages have fallen by 3.7 per cent in the past year, meaning most Kiwis are going backwards as their wages struggle to keep up with rising prices.

“Many economists expect conditions to become tougher in the coming year.

“Weak construction data is concerning and reflects flagging confidence in the future of the New Zealand economy alongside major materials and worker shortages.

“But the Government has done nothing to fix those bottlenecks to growth, including leaving current failed immigration settings in place. 

“New Zealand needs a real economic plan which will unleash enterprise and lift wages. Labour’s only response to current economic woes is to spend, spend, spend – and increase taxes to pay for it.”