INDEPENDENT NEWS

Growth figures too bouncy to bank on - Cullen

Published: Thu 23 Dec 1999 02:15 PM
23 December 1999
Growth figures too bouncy to bank on - Cullen
"The latest GDP result showing 2.3 percent growth in the September quarter contains as much cause for concern than for celebration," Finance Minister Michael Cullen said today.
"Like the curate's egg, it is good only in part. The 7.3 percent lift in exports is welcome. But there is still no real sign that the gap between imports and exports is narrowing and - until that happens - we cannot claim to have a healthy economy.
"Over the year to September, exports grew only 5.2 percent while imports surged almost 9 percent. And the provisional overseas merchandise trade figures for November, which contain more recent data than the GDP numbers, point to continuing weakness in our balance of trade.
"They suggest a shortfall for the month of $795 million. This is significantly larger than the average November deficit during the 1990s of about $233 million.
"The 2.3 percent GDP figure follows a contraction in the June quarter of 0.3 percent. That is a huge movement between quarters and points to a high and unhealthy measure of volatility in the economic cycle," Dr Cullen said.
"This reinforces the Government?s view, expressed in the Speech from the Throne at the opening of Parliament on Monday, that we must put resources and energy into growing the export sector.
"The only way to improve the living standards of New Zealanders in a sustainable way is by increasing exports, particularly at the high value-added end of the spectrum. That will be a major thrust of our economic strategy," Dr Cullen said.
ENDS

Next in New Zealand politics

Bill to allow licensed premises to stay open for RWC matches
By: New Zealand Government
KiwiBuild programme losing another top boss
By: RNZ
Helping our cities grow up and out
By: New Zealand Government
Ngāpuhi elder 'shocked' by conditions at Ngawha Prison
By: RNZ
Independent election policy costing unit a step closer
By: New Zealand Government
Primary and intermediate principals vote to accept new offer
By: NZEI
Breach of 'journalistic privilege' during unlawful search
By: Independent Police Conduct Authority
BSA releases decisions on coverage of mosque attacks
By: Broadcasting Standards Authority
PM's Post-Cab 19/8/19: Bad Mail
By: The Scoop Team
Details matter for RWC licensing
By: New Zealand National Party
Government adopts ACT's Rugby World Cup legislation
By: ACT New Zealand
Government can give Kiwis a fair go on Rugby World Cup
By: ACT New Zealand
Bill to open bars to World Rugby Cup viewers welcomed
By: Clubs New Zealand
New Bill could allow fans to watch Rugby World Cup matches
By: Hospitality New Zealand
Govt tells big cities: grow up and out
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media