Low growth policy outcomes continue - 22 September

Weak growth statistics demonstrate that economic policy change is needed say the New Zealand Manufacturers and Exporters Association (NZMEA). Growth is being stunted by a high exchange rate which is hurting exporters, and in terms of economic policy we still have the same framework that caused our recession.

NZMEA Chief Executive John Walley says, “The most concerning part of these statistics is not the growth number but that export volumes are down. That indicates that not only is growth anaemic, but we are seeing more of the same imbalances in that growth that were evident before the economic crisis.”

“Added to this problem are the Treasury forecasts on which the Government’s Budget was built. Without the growth Treasury forecast (0.8 percent for the June quarter) New Zealand’s debt path looks even more worrying. The 4 percent growth predicted for 2013 also seems increasingly unlikely with ever growing global problems.”

“We will not see stable growth until Government policy issues are sorted out. The highly skilled, well paid job base will continue to contract as exporting firms hold back on investment due to the impact of our overvalued and volatile currency.”

“Policy instruments to correct this problem are available.”

ENDS

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