New Zealand’s gross domestic product (GDP) fell 0.9 percent in the June 2025 quarter, following a 0.9 percent increase in the March 2025 quarter, according to figures released by Stats NZ today.
Activity decreased in the June 2025 quarter across 2 out of 3 high-level industry groups: goods-producing industries fell 2.3 percent, and primary industries fell 0.7 percent. Service industries were flat.
That is a big fall. It is almost certain primary industries will do well in the current quarter, but will that be enough to counter the goods and service industries?
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
1 comment:
Your fault GDP is plummeting, David. Not kidding. I am deadly serious. You do weekly polling for the National Party and its Cabinet Ministers tell me your polls are immensely influential to the Party in terms of setting their policies. That is, National's policies are not being properly thought out. The Party simply responds to the herd that you poll and follows the stampede - even should it be going over a cliff.
The institutions in NZ, whether they be the RBNZ or the Nats policy-making machine (which includes your firm, David) have failed the country. New ones must replace them. However the relationships are all so cosy that washing them away has become hard to achieve.
Not convinced? Read this para from John Cochrane, one of America's best and biggest names in finance -
"Supporting things that mobs of voters say they want, to pacify the little dears, when we understand that the cause and effect reasoning is utterly wrong, seems like exactly the sort of things economists should not do! And will not bring any peace when they figure it out. Lots of voters in the US want policies that will not work. Should we support that in the name of social peace?"
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