GDP stats highlight two-speed economy

The gap between the tradable and non-tradable parts of the economy has grown to its biggest since 2000 meaning the economy is growing more unbalanced under National’s economic leadership, the Green Party said today.

GDP statistics released today by Statistics New Zealand show that the tradable parts of the New Zealand economy (exporters and trade-exposed businesses) shrunk by 0.8 percent in the December 2015 quarter while the rest of the economy (the non-tradable sector) grew by 0.9 percent over the same period.

“Increased economic activity in the December quarter was again led by growth in the non-tradable sectors especially business services,” Green Party finance spokesperson Julie Anne Genter said.

“However, the tradable sector went backwards this quarter. It’s the tradable sector of our economy that enables us to earn our way in the world.

“The GDP data tells a tale of a two-speed economy: the spending side of the economy is growing while the internationally competitive part of our economy is struggling.

“And we’re still to see the real impact of the rapid decline in export earnings from the dairy sector flow through to these numbers.

“For a stronger, more balanced economy, the tradable sector needs to attract more resources and grow faster than the non-tradable sector.

“After seven years, National are failing to rebalance the economy towards saving, investment, and exports and away from borrowing and consumption.”

The Green Party recommend a number of changes help New Zealand’s exporters.

“A comprehensive capital gains tax (excluding the family home) would help drive capital from property speculation in Auckland into the productive sectors,” said Ms Genter.

“Greater spending on research and development would help our economy diversify.

“Strengthening Kiwibank giving it a stronger public purpose to drive competition in the banking sector would also help lower the costs of capital for businesses looking to expand.”

Action

Protect Nature

Volunteer

The Greens are proud to be driven by passionate people like you. Today we need your help to take action on the biggest issues facing Aotearoa. Volu...

Action

Save Auckland's Climate Budget

Sign the petition to stop Mayor Wayne Brown's proposal for dangerous cuts to climate and environmental programmes that protect us from extreme weat...

Action

No New Mines 2023

Action

Expand Voting

Now more than ever, young people in Aotearoa are impacted by Government decisions, and they deserve to have a say. We are calling on all Members of...

Action

End Intensive Winter Grazing

Sign the petition to Labour Ministers, to move faster in bringing regulations into force and end intensive winter grazing.

Action

Trains for Climate

Add your name to our open letter urging the Minister for Finance Grant Robertson to save our passenger trains between Wellington, the Wairarapa and...

Action

Healthy Oceans 2022

Join our Healthy Oceans Crew to help us keep the health and protection of our oceans high on the Labour Government’s political agenda.

Action

It's time: A Ministry for Rainbow Communities

Join our call asking the Prime Minister to establish a Ministry for Rainbow Communities that can champion Rainbow issues.

Action

No new mines on conservation land

Sign the open letter asking Labour Ministers to stick to their promise of banning new mining projects on conservation land.

Action

Allow community ownership of our buses

Public transport is an essential service and helps to tackle the climate crisis by reducing our carbon emissions. But there are barriers to communi...

Action

Local Events

We have activists across Aotearoa / New Zealand who are working hard to build a brighter future for our kids and grandkids. This page lists upcomin...

Latest Finance Announcements

Story

Cold climate cuts for Christmas

Once again, the National Party has shown a breathtaking willingness to say one thing during an election campaign and then do the exact opposite whe...

State of books makes clear case for wealth tax

The case for a wealth tax has never been stronger.

Crumbs from the property speculator’s table

High-income property speculators will be the biggest winners from a National Party tax plan that will send house prices and rents through the roof,...

Labour needs to reconsider wealth tax

The announcement today that the Government has decided to cut funding to public services shows exactly why they need to tax wealth and big corporat...

Change the tax system to support struggling households

While inflation is no longer increasing, the current rate will still bring little comfort to families struggling to make ends meet, says the Green ...

Fair tax changes never more urgent

Labour is sending a clear message to New Zealanders that the Green Party is the only way we will get progressive change.