prime Minister christopher luxon was right. He has inherited a recession.
Technically, economists require two consecutive quarters of data before calling a recession, but in the real world all the evidence suggests we are already there.
Across the whole year, gross domestic product (GDP) fell 0.6 per cent. In a year when New Zealand had record levels of net migration, that paints a grim picture.
Per capita, GDP was down 0.9 per cent.
It's a terrible result. Once again a Labour Government leaves power with a shrinking economy. Grant has done it, and Michael Cullen did it before him (and the Cullen recession started prior to the GFC).
Go further back and the 4th labour government did some good stuff, but they left the incoming Government with a massive deficit. The 3rd Labour Government left an inflation rate of 14.7%. i wasn't born when we had the second Labour Government, but you get the general trend!
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
2 comments:
Undoubtedly the outgoing Labour Government and it's PM, Chris Hipkins, were (inter alia) financially incompetent and next to useless.
Useless, personified, being Grant Robertson.
To The Author of this article, David Farrar.
I see another interesting to the point statement regarding the state of NZ Finances, for an incoming Govt to "receive from an outgoing Govt - The NZ Labour Party"
I am sure David you will have seen "similar comment, from other quarters since the New NZ Govt took Office, only to be decried by Grant Robertson".
I also "note your comment re Michael Cullen". In another posted article, that topic of the NZ Finances from one Govt to another, arose, I posted a comment that - "What NZ was witnessing, now, had a similar ring tone, to the period of The Clark Govt losing an election (to National - how history repeats) - and when Bill English "took a gander at the Books, it was revealed the Cullen had placed NZ in a deficit".
Believe it or not (and I sure you may have seen this) The Dominion Post made this story a front page headline. Cullen "went bush" so I am not sure what his comments may have been at the stage.
But, oh dear Grant Robinson has to "arise and make a point of dispute"!
I wonder if Grant has been "reading the tea leaves of late" (news articles, both here & elsewhere)- that point to the wasteful spending of the NZ Labour
Govt from 2017.
Now all we need is for Andrew Little to regain a Senior position within a Union - and we will see "another form of attack, by strike action, for pay increases" upon the current Govt - and this action will further add to our Financial woes.
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