“Sustainable increases in our incomes depends on more being produced for every person in New Zealand and from every hour worked, but increases are weak according to the Gross Domestic Product (GDP) statistics out today,” says Bill Rosenberg, CTU Economist.
“Per person, production (GDP) increases were only 0.1 percent in the three months to March and 0.5 percent over the year. Per hour worked, production went backwards – over the three months to March it fell 0.2 percent, and rose only 0.5 percent over the same period last year. These are a poor basis for wage improvements,” says Rosenberg.
“We are also seeing weak exports, production from manufacturing shrinking in three of the last four sectors and increasing only weakly over the year (1.4 percent), and overall increases dependent on construction and care for our aging population. Household spending is increasing more slowly than the rest of the economy.
“We need a more balanced economy if we want sustainable and increased incomes,” Rosenberg says.