Government Outlines Strategy for Economic Recovery Amid GDP Decline

“New Zealand has now experienced eight quarters of negative growth on a per capita basis,” Willis noted.

Finance Minister Nicola Willis emphasized the importance of fiscal discipline and growth-oriented policies following the latest economic data released by Stats NZ, which showed a 1% contraction in Gross Domestic Product (GDP) for the September quarter.

While Treasury and economists forecast an economic rebound in the current quarter and stronger growth next year, the figures underscore the need to restore stability and foster opportunities for New Zealanders.

“New Zealand has now experienced eight quarters of negative growth on a per capita basis,” Willis noted. “This decline highlights the lingering effects of high inflation and the measures taken to combat it, including a Reserve Bank-engineered recession, which have constrained growth.”

Encouragingly, inflation is now under control, paving the way for recovery. “New Zealanders can look forward to brighter prospects in 2024, but there is no avoiding the conclusion that we have significant work ahead,” Willis said.

Driving Economic Growth

To address these challenges, the Government has launched a series of initiatives designed to reignite economic growth and improve living standards:

Fast-Tracking Major Projects: Accelerating infrastructure projects to create jobs and stimulate investment.

Streamlining Regulation: Reducing red tape to make it easier for businesses to thrive.

Infrastructure Pipeline: Developing a long-term plan for critical infrastructure to meet future demands.

Education Reforms: Refocusing the education system on essential skills to align with labor market needs.

Trade Agreements: Negotiating additional trade deals to expand market access for New Zealand businesses.

Science and Innovation: Better aligning research funding with economic priorities to drive commercialization and innovation.

“These measures will not only address immediate challenges but also lay the groundwork for sustained economic growth, ensuring all New Zealanders have access to opportunities,” Willis said.

A Brighter Future Ahead

The Government’s focus on fiscal responsibility and targeted investments aims to restore confidence in New Zealand’s economic management. “We are committed to respecting taxpayers’ money while creating an environment where businesses can succeed, and households can prosper,” Willis added.

As global economic conditions stabilize, the Government is optimistic about leveraging these reforms to achieve a more resilient and dynamic economy. “While the latest GDP figures are a reminder of the challenges we face, they also strengthen our resolve to build a brighter future for all New Zealanders,” Willis concluded.