New Zealand in deepest recession in living memory

The economic numbers today are proof that this Government has failed to keep our economy progressing, National’s Finance spokesperson Paul Goldsmith says.

Stats NZ confirmed today New Zealand’s economy shrunk by 12.2 per cent following a 1.4 per cent drop in the first quarter. This compares with 7 per cent and 0.3 per cent in Australia.

"The numbers reveal a smaller economy with thousands of Kiwis out of work, businesses failing and a massive drop in New Zealand’s income.

“The lack of pragmatism and a clear plan from Labour has made the economic hole deeper and the impact harder than it needed to be.

“This economic damage was recorded in three months but will last for decades to come.

“This is the deepest recession in living memory. It is already having a devastating impact on Kiwi families. An extra 70,000 New Zealanders have lost their job since March, and a further 100,000 are forecast to lose their jobs in the next two years.

“New Zealand is looking at a longer, more painful economic crisis than earlier forecast. There is a better way, it requires a serious growth plan to get us back on track.

“New Zealanders have a choice for our economic recovery: more government programmes, welfare and costs for business under Labour; or lower taxes, more business investment and investing in quality infrastructure under National.

“Our economic plan of job-friendly policies and investment in quality infrastructure will grow our economy, give businesses the confidence to grow and restore household incomes for New Zealanders.

“National will release our fiscal plan tomorrow, which will carefully balance the need to inject stimulus, increase investment in core public services and restore government debt back to prudent levels.”