Labour claims that economic cuts have fueled a recession, with New Zealand's GDP shrinking 1% this quarter.
New Zealand has officially entered a recession, according to the latest GDP figures released on December 19, 2024. The country's economy recorded its weakest six-month period since 1991, excluding COVID-19. Labour finance spokesperson Barbara Edmonds blamed Finance Minister Nicola Willis for exacerbating the situation with her austerity measures.
Edmonds stated that the economic shrinkage in the past six months is a dire result and claimed that the government's focus on cutting and burning has not yielded any positive outcomes. Instead of promoting growth, jobs, and opportunities, the current policies have led to increased debt without any tangible benefits. The Labour party argues that the government should prioritize supporting the economy and creating jobs rather than implementing policies that further deepen the recession.
The impact of these economic decisions on New Zealand's citizens remains a pressing concern, with many facing unemployment and stagnating living standards. As the country navigates this challenging period, the opposition is calling for a shift in focus towards more effective economic management and job creation.