New Zealand facing largest decline in GDP in 160 years

Estimates from the Reserve Bank today show New Zealand will this year experience the largest decline in annual GDP in at least 160 years, highlighting the seriousness of the economic crisis we are facing, National’s Finance Spokesperson Paul Goldsmith says.

“The Reserve Bank released its outlook for the economy today in the Financial Stability Report which shows that New Zealand is set to face the largest economic shock in 160 years.

“Crucially, it illustrates why New Zealand desperately needs sound and responsible economic management to save jobs and restore the country’s finances.

“A clear economic plan, a track record of delivery and a competent team is the only recipe for providing confidence to households and businesses.

“First and foremost, we need to open up the economy again quickly.  That’s hard when the Prime Minister and her deputy can’t agree on when to move to Level 1.

“We also need to get cash to small businesses most affected, to save jobs. National has already proposed positive policies like a $100,000 GST cash refund scheme for businesses and a $150,000 instant asset write-off scheme. 

“This Government has a track record of wasting money on low value for money projects - like KiwiBuild, Fees Free or the Provincial Growth Fund - but no record of delivering a positive plan for rebuilding the economy.

“Today in the House, Finance Minister Grant Robertson admitted that the Government wasn’t using CBAx, a Treasury tool to assess the effectiveness of proposals, on any of the billions of dollars currently being spent. 

“Only National can be trusted to deliver on the economy.”