Productivity growth under National’s economic management is the weakest it’s been since 1996, the Green Party said today.
Productivity statistics released today by Stats New Zealand show that while productivity growth this year has been positive, productivity growth over the whole economic cycle is well below longer-term trends. Productivity is best observed in growth cycles rather than in single year figures, they say.
“Productivity growth over this most recent economic cycle (2008-2015) is the weakest it’s been in twenty years,” Green Party finance spokesperson Julie Anne Genter said.
“Productivity numbers released today further highlight the weaknesses of National’s current economic strategy.
“Lifting productivity is key to increasing New Zealand’s standard of living. It’s about working smarter, not harder.
“Under National, the economy is growing from working more rather than working smarter and adding value to what we make and grow.
“Labour productivity, capital productivity, and multifactor productivity are all growing at much lower levels than in previous economic cycles.”
Since 2008, labour productivity growth has declined from an average annual growth rate of 1.4 percent to 0.8 percent. The declining productivity of capital has doubled from an average annual rate of -0.3 percent to -0.6 percent since 2008. The multifactor productivity has declined from an average annual growth rate of 0.7 percent to 0.2 percent since 2008.
“National is not building a stronger, more productive, more competitive economy. They are too wedded to the status quo and it’s not working,” said Ms Genter.
“Greater spending on research and development would help our economy diversify away from high volume, low-value commodity exports.
“A comprehensive capital gains tax (excluding the family home) would help drive capital from lazy property speculation into more productive uses,” said Ms Genter.
Link to Stats NZ productivity release: