CTU – Underlying challenges in stronger GDP news show need for economic action

The economy rebounded from the drop in GDP in March to grow 1.7% in the last quarter.

CTU Economist Craig Renney said, “While this data demonstrates the strength of the current economy, the trend of weakening growth is present. The risk of recession of these data is removed, but the average annual growth fell from 4.9% to 1% in just 3 months”.

Renney said that “since the start of COVID, the economy has grown by almost 5% in real terms. Exports of goods and services increased by 11.3% last year and annual GDP per capita continued to rise. Combined with the low unemployment rate, this is a positive sign of the continued resilience of the New Zealand economy.”

“However, growth was quite frothy, driven by strong growth in travel and tourism, accommodation and hospitality. Manufacturing and construction both fell, as did agriculture. is necessary to ensure that all sectors of the economy are growing so that we can build a balanced recovery from the effects of COVID”.

CTU economist Craig Renney said: “New Zealand’s economy grew faster in the last quarter (1.7%) than Australia (0.9%), Canada (0 .8%), Japan (0.9%), the 19 euro zone countries (0.7%), and the OECD average (0.4%). The United Kingdom and the United States experienced an economic decline in the last quarter (-0.1% each).

“Ensuring that the benefits of this growth spread to all Kiwi households and sectors will be key to lasting prosperity. The coming quarters of growth will show whether the international factors that are currently slowing global growth will continue to affect New Zealand “.

© Scoop Media

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