Nicola Willis Emphasizes Need for Fiscal Discipline as GDP Grows

Stats NZ reported a 0.2 per cent rise in GDP for the quarter ending in March.

Finance Minister Nicola Willis highlighted the importance of restoring fiscal discipline in public spending and driving economic growth, following the release of GDP data for the March quarter.

Stats NZ reported a 0.2 per cent rise in GDP for the quarter ending in March.

“Today’s data, while technically positive, underscores the reckless spending and economic mismanagement of the previous government. New Zealanders are enduring the prolonged effects of high inflation and high interest rates, leading to a more persistent downturn than anticipated.

“I understand the challenges people are facing with the ongoing cost of living crisis. Our government has a plan to turn things around. We are committed to rebuilding the economy so that workers, businesses, and families can prosper once more.

“Today’s data supports our approach to strengthening and growing the economy, which includes careful government spending, lower taxes for hard-working New Zealanders, and rebuilding the country’s economic foundations.

“Despite the current difficulties, Treasury’s Budget forecasts show an improving outlook from the second half of this year, with expectations of controlled inflation, dropping interest rates, and recovering growth.

“Inflation is heading in the right direction. Last week’s data showed food prices in New Zealand increased by just 0.2 per cent in the 12 months to May 2024, the smallest rise since September 2018.

“This slower pace of price increases for everyday items like food and groceries will help families struggling with the cost of living.

“From 31 July, Kiwis can expect tax relief in their pay packets. Eligible families will also benefit from the FamilyBoost payment, covering up to 25 per cent of early childhood education costs starting 1 July.

“Visit Budget.govt.nz/taxcalculator to see how much you and your family will benefit from our tax relief package.

“Our government is focused on the drivers of productive growth: better education and skills, improved infrastructure, increased competition and reduced red tape, stronger global connections, and a smarter approach to science and innovation,” said Nicola Willis.