INDEPENDENT NEWS

Economy slowing while Government in denial

Published: Tue 16 Apr 2019 11:05 AM
Amy Adams - Finance
16 April 2019
The newly released Performance of Services Index (PSI) shows that the services sector just had its weakest month in six years, National’s Finance spokesperson Amy Adams says.
“Bad economic policies and uncertainty about a Capital Gains Tax are weighing on business confidence and adding to the slowdown of the New Zealand economy.
“The services sector accounts for about two-thirds of the New Zealand economy so when it’s struggling, the New Zealand economy is struggling.
“The weakening services sector follows from last quarter’s GDP growth of just 2.3 per cent last year compared with 3 to 4 per cent growth when the Government came to office.
“What’s worse, economic growth per person has been zero over the past six months. That means, despite the rhetoric from the Government, the economy has only been growing because of population growth – confirmed by the rising migration numbers released last week.
“More evidence of the weakening economy include the drop in electronic card spending, lower economic growth forecasts by all major banks, weakening business confidence, rising jobseeker numbers, stalled job growth, a rising cost of living and a Reserve Bank that has recently signalled a cut in interest rates in order to stimulate the economy.
“Yet just two weeks ago the Prime Minister refused to accept the New Zealand economy has weakened.
“The Government is in denial that its bad economic policies are playing a role in slowing the economy down. Those policies include banning oil and gas exploration, restricting much-needed foreign investment, introducing union-friendly labour law changes, more taxes and the prospect of a Capital Gains Tax.
“A stronger economy means more jobs, higher incomes and a lower cost of living. National understands that the way to achieve a strong economy is through sensible economic policies that encourage businesses to grow, invest and hire new staff.”
ends

Next in New Zealand politics

Police officer should not have engaged in pursuit
By: Independent Police Conduct Authority
Targets overlook the 174000 children living in worst poverty
By: Child Poverty Action Group
Guidelines needed to avoid risks in government AI use
By: University of Otago
Pike Families welcome opening of drift
By: Pike River Family Reference Group
New design offers certainty for walking and cycling harbor
By: New Zealand Transport Agency
Climate Change Response Bill – James Shaw Speech at reading
By: New Zealand Government
More unsold Kiwibuild houses bought by govt
By: RNZ
IPCA report into fatal fleeing driver crash
By: New Zealand Police
Targets set to help break the cycle of child poverty
By: New Zealand Government
PM breaks another commitment on early intervention
By: New Zealand National Party
Deepfake and the law - Expert Reaction
By: Science Media Centre
Pike River Re-entry
By: New Zealand Government
Long Awaited Re-Entry to Pike River Mine
By: New Zealand First Party
Families witness as Pike River mine re-entry attempt begins
By: RNZ
Pike River re-entry attempt planned for tomorrow: families
By: RNZ
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media