Bruce Cotterill: GDP slump exposes deeper cracks in economy and government response

When the latest quarterly GDP result came out last week, many of the accompanying commentaries expressed surprise that it could be so bad.

The June quarter result came in with a negative result of 0.9%. That means that the economy shrank during the quarter. Most economists had predicted 0.4%. The result was double the most pessimistic projections.

Make no mistake. Shrinkage of 0.9% in three months is a disaster. Especially for a small economy with a growing population whose No 1 export is currently enjoying a booming market and a weak dollar.

Damien Grant: Corporate New Zealand has written off this administration

“If no policy action is taken, the fiscal position would become increasingly unsustainable and net core Crown debt would rise to around 200% of gross domestic product (GDP) by 2065” declares the Treasury in their September Long-Term Fiscal Statement.

They soften the blow marginally with some wistful optimism, “however, the Treasury expects that governments will make adjustments to fiscal policy that will flatten the debt trajectory”.

Bob Edlin: Willis (bruised by business survey)....

Willis (bruised by business survey) draws media attention to RBNZ appointment and away from debt projection

It was a day of highs and lows for Finance Minister Nicola Willis, starting with the lows.

In the morning, we were learning that she and the PM have been ranked among the least impressive Cabinet ministers in the latest Mood of the Boardroom survey.