According to New Zealand’s Finance Minister, Grant Robertson, the nation’s economy showed its resilience despite recent GDP figures showing a modest decline in Q4 2022, leaving the Government well positioned to help New Zealanders face cost of living pressures in a challenging global environment, adding: “The economy had grown strongly in the two quarters before this result. While GDP is likely to move around a bit as we continue to recover from COVID, our economy is 6.7% bigger than before the start of the pandemic, ahead of most countries we compare ourselves with.
“GDP declined 0.6% in Q4 2022 following an increase of 1.7% in Q3 and 1.6% in Q2. On an annual basis, economic activity was 2.2% higher than the same period a year earlier.
“2023 was always going to be a challenging year. The global economy is volatile and still recovering from COVID impacts.
“This result shows the strength of the economy in this challenging environment. We are well-positioned to support New Zealanders. The impact of the recent extreme weather is projected to affect activity in Q1 2023. But after that, the Reserve Bank is forecasting the rebuild will add about 1% to GDP over the next couple of years.
“The Treasury and the Reserve Bank have previously forecast that a period of high inflation is set to be followed by a shallow recession. In the face of this, we will continue to focus on supporting New Zealanders with cost-of-living pressures while carefully managing the Government’s finances.
“The data shows central government consumption fell 2.8% in Q4 2022 and the Treasury has already noted that the Government’s fiscal policies are helping reduce inflation pressures.
“We will continue to take a balance approach that includes investing in the strong public services that New Zealanders need, in hospitals, schools and housing. We will address climate-change, with a focus on adaptation as the extreme weather events that we have experienced become more frequent.
“These are challenging times for many New Zealanders, but our economy is resilient and we are building an economy for the long-term that delivers higher wage jobs and low emissions.”