The Labour Government has delivered the only shrinking economy in the OECD," said ACT Finance spokesman, Rodney Hide.

Statistics New Zealand released figures today showing a June quarter GDP contraction of -0.7%

"Seventeen other OECD countries have so far posted their June quarter results. All show economic growth. New Zealand alone is going against this trend and contracting.

The growth rates for the 17 countries average 1.8% for the June quarter, representing an annualised growth rate of around 7%. New Zealand's annualised rate for the quarter is -2.8%.

“This is a scathing condemnation of the Government's economic mismanagement.

"The contraction is their fault and theirs alone. It is Labour's appalling policies and inept handling of the economy that have delivered this remarkable contraction.

"There is no good reason why New Zealand should be swimming against the stream. World growth is accelerating and living standards are appreciating. New Zealand is going backwards on these measurements.

"Dr Cullen had rubbished earlier predictions of a Q2 contraction, and is similarly sarcastic about suggestions of a Q3 contraction.

"There have been a number of concerning statistics and surveys in recent weeks which paint a gloomy picture of the short - medium term outlook: GST receipts, price increases, source deductions, and falling confidence surveys, to name but some.

"There is a real risk that Dr Cullen may well deliver yet another flat or negative quarter in Q3,” said Rodney Hide.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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