NZ economy and the global crisis

A load of spin from the government about growth...perhaps NZ will need another earthquake to maintain the growth statistics?!

The Opposition are right in their criticism but are insisting on the same failed solutions of America and Europe while the government maintains their own failed policies.

Meanwhile, sensible solutions, such as those suggested by Steve Keen, of a debt jubilee ('QE for the people') are ignored – as are the underlying reasons for the crisis.

Signs good for moderate NZ growth, says English

Radio New Zealand,

21 September, 2012

Finance Minister Bill English says the rebuild of earthquake-damaged Christchurch and a good agricultural season are behind continued growth in the economy.

Gross Domestic Product (GDP) - a measure of the economy's production - was up 0.6% for the three months to June, driven by a growth in milk production and construction in Christchurch.

That pushed annual growth to 2% for the year ending June 2012 - a level not seen in more than four years.

Mr English told Radio New Zealand's Morning Report programme on Friday the signs are good that New Zealand is on the path to moderate growth.

The minister says the Christchurch rebuild is huge and likely to pick up in speed, but it has a long way to go before it reaches full speed. Mr English says the agricultural effect might not continue in the same way.

But the Labour Party says it is a problem that the country's economic growth is still not being paid for by earnings from exports. Finance spokesperson David Parker says fundamental problems persist.

"It's not as bad as it is in some parts of the world, it's worse than it is in other parts.

"The main underlying problem is that growth is still not being paid for by earnings from our exports, which don't cover the cost of our imports and our interests - and that's why we're losing so many export jobs."

New Zealand First leader Winston Peters says the GDP figures are simply a convenient blip for the Government that won't last, because the current account deficit is forecast to creep up.

Reserve Bank must be given tools to tackle dollar - parties

Radio New Zealand,

21 September, 2012

Opposition parties say the Government has missed an opportunity to give the Reserve Bank more tools to bring down the value of the New Zealand dollar.

New Reserve Bank Governor Graeme Wheeler has signed a Policy Target Agreement with the Government with only minor changes made to the previous agreement.

Labour's finance spokesperson David Parker says Mr Wheeler can't properly address the high dollar, which he says is the biggest issue facing the export economy.

Mr Parker says other countries are actively lowering their currencies so they can export more.

New Zealand First leader Winston Peters agrees, saying other countries are prepared to take actions that for blind ideological reasons New Zealand is not.

Green Party co-leader Russel Norman says the Government's continued failure to act on the high dollar means New Zealanders will pay the price in lost jobs.