Economic growth is expected to pick up soon.
Finance Minister Nicola Willis has highlighted the importance of steps taken by the Government to drive economic growth after latest GDP figures showed a 1% drop in the September quarter. According to Stats NZ, this decline reflects the impact of high inflation on the economy, which led the Reserve Bank to engineer a recession.
However, Treasury and most economists are forecasting growth to pick up in the current quarter and grow more strongly next year, providing good news for households and businesses. The Government has acknowledged that while there is still work to be done, encouraging signs indicate that inflation is under control and growth will revive.
To drive growth, the Government plans to fast track major projects, remove red tape, develop an infrastructure pipeline, refocus the education system on core skills, negotiate additional trade deals, and align support for science with New Zealand's economic needs. With eight quarters of negative growth on a per head basis now behind them, New Zealanders can look forward to brighter prospects next year.