Red lights are flashing for the New Zealand economy, which has shrunk even while inflation rages on, National’s Finance spokesperson Nicola Willis says.

Data released by Statistics NZ confirms that New Zealand’s economy shrank in the first three months of the year, marking six months straight of declining economic performance.

“The New Zealand economy is now incredibly fragile. Excessive inflation, high interest rates, a severe balance of payments deficit and now recession: this is a dangerous combination that threatens New Zealanders’ livelihoods.

“While the Government continues to make excuses, the data does not lie: New Zealand is now in worse shape than many of the countries we compare ourselves with including Australia, Canada and the US, all of which have faced similar global challenges but none of which face the toxic economic predicament we now find ourselves in.

“The simple fact is that Labour has mismanaged the economy and New Zealanders are paying the price. Labour’s choice to spray the money hose with wild abandon with too little care for results, to so slowly re-open our borders and to ignore the pleas of productive businesses laid-low by a rolling maul of red-tape have made our predicament much worse than it needed to be.

“This recession is a red-light warning: the time for cavalier big-spending, anti-business, anti-growth policies is over. 

“Now is the time for a return to the fundamentals of disciplined economic management, with a National government that backs the workers and businesses New Zealand needs to help grow our economy out of its current mess.

“National will focus on strengthening New Zealand’s economy by delivering better results for government spending, providing income tax relief for everyday workers and driving the skills, technology and infrastructure needed to support future growth.

“It is only with a strong economy that we can solve the cost of living crisis, bring down interest rates, lift incomes and pay for the quality public services New Zealanders deserve.”