The Daily Examiner.
Finance Minister Nicola Willis has welcomed news that the New Zealand economy is showing signs of recovery, as Stats NZ reports a 0.7% increase in GDP for the December quarter.
This growth follows consecutive declines in the June and September quarters, signaling what Willis describes as a turning point for the country.
While celebrating the progress, Willis acknowledged the challenges many families and businesses still face due to high inflation and interest rates.
She highlighted encouraging indicators, such as the 0.4% rise in GDP per capita—the first in two years—and a 3.5% increase in exports, largely driven by international tourism. “A growing economy means more opportunities, more jobs, higher incomes, and ultimately better public services,” she stated, emphasizing the government’s commitment to further growth through initiatives outlined in the “Going for Growth” progress report.
Opposition parties have reacted cautiously to the news. A spokesperson for the Labour Party questioned whether the recovery would meaningfully address the financial struggles many New Zealanders are still enduring. “While the government celebrates these numbers, the reality for many families is quite different. High living costs and the housing crisis persist,” they stated.
Meanwhile, the ACT Party echoed similar concerns, emphasizing that structural reforms are needed to ensure economic growth benefits all citizens. “We need to reduce wasteful spending and focus on creating a more competitive business environment,” said a representative.
The Green Party offered a different perspective, calling for a focus on sustainable growth. “While GDP growth is positive, we must ensure that it doesn’t come at the expense of our environment. This is an opportunity to invest in green jobs and renewable energy,” commented a Green Party spokesperson.
Despite the positive economic indicators, food bank providers are painting a more sobering picture. Representatives from major food banks report sustained high demand for their services. “We’re not yet seeing relief for families at the lower end of the income spectrum. Economic growth needs to translate into tangible benefits for these communities,” one provider noted.
Economists, too, are offering measured optimism. While exceeding expectations, the December quarter’s growth still leaves annual GDP 1.1% smaller than the previous year. Some sectors, including construction and telecommunications, continue to face challenges. “The growth is promising, but we must address the underlying vulnerabilities to ensure long-term stability,” one economist commented.
The government remains steadfast in its optimism. Nicola Willis reaffirmed the administration’s focus on improving living standards and creating higher-paying jobs. “Economic growth is the foundation for delivering the public services New Zealanders want and deserve,” she concluded.
The latest figures reflect a cautiously hopeful outlook, but the broader picture underscores the need for continued effort to bridge the gap between economic data and the everyday experiences of New Zealanders. Whether through sustainable practices, targeted reforms, or direct community support, the path forward will require collaboration across sectors and political lines.
