The Infometrics analysis released last night is far from a glowing endorsement of this Government’s economic management and shows that it must act to improve declining economic forecasts and plummeting business confidence, National’s Finance spokesperson Amy Adams says.
“Infometrics is now predicting GDP growth of only 2 per cent per year between now and 2021, well below the 3 per cent forecast by Treasury in Budget 2018. Lower GDP growth means fewer opportunities, lower wage growth and a lower standard of living for New Zealanders.
“This pessimistic forecast from Infometrics follows the recent below forecast GDP numbers as well as downgrades in expectations from most of the major bank economists.
“The worryingly low levels of business confidence and own activity highlighted by Infometrics show that the global economy is currently the only thing propping up growth, with both plummeting under this Government.
“There is simply nothing this Government has done that is pro-growth or good for business investment. Its low-growth policies hamper the economy’s ability to create opportunities, grow jobs and lift wages which will have a big effect on whether a business invests in that new piece of machinery or hires that extra staff member.
“The Government inherited a buoyant economy and seem to just expect that growth is inevitable and will continue to increase no matter what policies they implement. This is not the case.
“We have already seen GDP forecasts and actual GDP growth drop significantly. Growth was in the 3 to 4 per cent range under National but this has already dropped below 3 per cent. GDP per capita actually declined in the last quarter.
“The Government needs to stop taking the strong economy that they inherited for granted and start backing businesses and help to ensure growth continues. It is only by having a strong economy that we can grow wages and create opportunities for all New Zealanders.”