Productivity stats worst in decades

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:
http://www.stats.govt.nz/browse_for_stats/economic_indicators/productivi...

 

 

 

 

Latest Finance Announcements

Story

Green Party supports Budget 2021 which will help those in poverty

The Green Party supports the 2021 Budget which increases income support for New Zealanders living in poverty, and we’ll continue to push for a long...
Read More

Story

Green Party welcomes KiwiSaver fossil fuel and illegal weapons exclusion

The Green Party is welcoming the changes to KiwiSaver implemented today by the Government that require default providers to exclude investments in ...
Read More

Story

Greens welcome protections for Kiwis’ savings

The Green Party is welcoming the Government’s announcement that bank deposits up to $100,000 will be protected under new rules.
Read More

Story

Housing plan a start, but much more needed to meet the scale of the crisis

The Government’s housing announcement is a very small start but it doesn’t go far enough to genuinely meet the scale of the crisis.
Read More

Story

Greens announce 4 point plan to stop runaway housing crisis

The Green Party is calling for bold, transformational measures to stop the accelerating housing crisis that is locking New Zealanders out of a stab...
Read More

Story

Tax data exposes gross inequity between the wealthiest and poorest New Zealanders

Government data today shows that the wealthiest New Zealanders aren’t paying their fair share of tax, whilst everyone else chips in, Green Party sp...
Read More