Treasury data released today shows a resilient economy, but one with long-term challenges that need to be addressed to make sure that New Zealanders benefit from future economic growth, said CTU Economist and Director of Policy Craig Renney. The Treasury forecasts show that government debt will continue to be low by international standards, and unemployment will continue to be lower than the long-run. Wages will continue to grow faster than inflation, with record migration driving house prices higher in the future.
Craig Renney said “While it is pleasing to see growth returning in the economy, we need to make sure that the benefits of that growth are being equally shared. That means making sure that the government is continuing to invest in essential public services. It means making sure that benefits and pensions rise in line with wages, rather than with inflation. Maintaining fiscal control is important, but it shouldn’t come at the cost of leaving the most vulnerable New Zealanders behind.
Renney said “Whoever is in government after the election will be faced with the same set of choices. The test is how they respond to them. Spending cuts and tax giveaways, or maintaining the public services that we all rely upon. Treasury data today shows that we should take heart from the resilience of the economy. What we choose to use that resilience for will determine the outcomes for New Zealanders”.