Economic growth

More good news

Things are aligning nicely for the government at the moment.

First the surplus is bigger than expected heralding calls for tax cuts, then the latest consumer confidence survey has shown improvement as well.

New Zealand consumer confidence rose in October as rising house prices and a strong labour market keep people upbeat, further supporting economic growth.

The ANZ-Roy Morgan consumer confidence index increased to 122.9 last month from 121 in September, with people more optimistic about the country’s outlook.

The current conditions index slipped 1.4 points to 122.7, while the future conditions index gained 4.1 points to 123.1. ? Read more »

?GDP up” just the war cry the CTU was waiting for

Just when the economy is going gang busters along come the unions with their bludging, grubby hands out.

The latest figures show gross domestic product (GDP) grew 0.9 percent in the June quarter, taking annual growth to 3.6 percent.

Driven by housing, strong demand for exports and immigration, New Zealand now has the third highest growth rate in the OECD.

However, how much of the increased growth is getting through to workers?

ANZ chief economist Cameron Bagrie says any growth flows into the economy and eventually into wages.

“If we continue to see unemployment track down, wages will start to move up and people will start to get ahead.

“We’re seeing real wage growth at the moment of 1.5 percent, but I’m expecting that to grow to 2.5 percent over the next 24 months.”

However, critics say we’re relying on immigration and on a per person basis New Zealand’s hardly growing at all.

“The biggest disappointment is the fact that it’s driven by population growth rather than by increasing the quality of what we are doing. Our productivity growth is probably going backwards,” says CTU economist Bill Rosenberg.

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How is Robbo going to spin this good news?

Labour likes to talk down New Zealand and its economy. They are trying, and failing, to convince voters that they have better solutions.

I doubt even Robbo could spin this news negatively.

This Thursday GDP figures are expected to show the New Zealand economy grew by at least 3.5 per cent in the year to June 30.

ASB’s economists are picking it to be as high as 3.7 per cent.

“We expect GDP lifted a whopping 1.2 per cent over the June quarter, led by construction, manufacturing and retail activity,” ASB senior economist Jane Turner writes in her preview.

Read more »

More good news

New Zealand is doing well, coming in fourth in the list of the Prosperity Index.

Labour will be having kittens because they see New Zealand as an economic basket case.

Every year, the Legatum Institute, a London-based think tank, releases its annual global Prosperity Index, a huge survey that ranks the most prosperous countries in the world.

The amount of money a country has is one factor of prosperity, but the Legatum Institute considers more than that in its ranking.

The organisation compares 89 variables to come up with its list. These variables include traditional indicators like per capita gross domestic product and the number of people in full-time work as well as more interesting figures such as the number of secure internet servers a country has and how well rested people feel on a day-to-day basis.

The variables are then split into eight subindexes: economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom, and social capital.

The index looked at the 142 countries that have the most available data.

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Farrar slams Little’s invented stats

David Farrar knows a thing or?two about statistics, and a fair amount?about politics. When he isn’t writing about arts, lifestyle and travel topics he dabbles in politics.

Today he slams Andrew Little’s made up stats from his pre-budget speech yesterday.

Stuff further reports:

Little said just 37 per cent of economic growth had gone into the pay packets of working families since National came to power ? down from over 50 per cent under the previous Labour government.?

That meant the average family had lost out on more than $13,000 under the Government, and would miss out on?$50 a week this year.

The use of this statistic is rather revealing, as to both how desperate and also how ill informed Labour are. Three things I?d note: ? Read more »

Paul Keating comes good

Known as the Lizard of Oz, Paul Keating isn’t that popular but he has come good by suggesting that the?Federal government take an axe to?the?budget rather than look at raising taxes.

It should be possible to strip $90?billion out of the federal budget ? a cut of 20 per cent ? Paul Keating claims, based on his achievement as treasurer through the late 1980s.

The former prime minister said yesterday that the burning issue should not be taxes but rather how to adjust the budget to the reality that the income the world was paying us had fallen, and this was cutting both personal and company taxes.

?All these things are pushing down on commonwealth revenue and, when it has been so affected, the penny ought to drop that we ought to be cutting spending,? he said, noting that Scott Morrison was correct to highlight this. ?? Read more »

Now here is some irony: China may end up winning the election for Labour

If our economy tanks because of China, it will finally give Labour a chance to take National down for poor economic performance, even when they have no plans of their own except to massively increase spending and taxes.

Shares on major exchanges have fallen for a sixth straight day and crude oil prices touched multi-year lows as investors fretted over the state of China’s economy and its ability to stabilise its stock market.

In a move that deepened concerns over China’s economic health, the People’s Bank of China set the yuan midpoint rate lower for an eighth consecutive day. The 0.5 percent decline was the biggest between daily fixings since August.

China suspended a circuit breaker implemented at the start of 2016 that stopped trading for the day when the benchmark index fell 7 percent, a halt already triggered twice this week. Analysts and investors said the mechanism, put in place to avoid market volatility, may have backfired.

“People see the weakness in China and in the overall equity market and think there’s going to be an impact on corporations here in the United States,” said Robert Pavlik, chief market strategist at Boston Private Wealth in New York. ?? Read more »

It looks like the manufacturing crisis that Labour declared is well and truly over

A few years back Labour declared a crisis in manufacturing and set up their own inquiry into manufacturing. Then, on the?day the report into the crisis was released, figures came out showing that manufacturing was going gang busters.

Since then there has been nothing but good news from manufacturing and the crisis that Labour declared is well and truly over.

Yesterday even more data was released to show manufacturing enjoying increased and record sales.

New Zealand manufacturing sales volumes rose at the fastest pace in almost two years in the third quarter, boosted by a pickup in meat and dairy activity.

This has prompted economists to revise up their forecasts for economic growth.

Total seasonally adjusted sales volumes increased 3.5% in the three months ended September 30, after growth stalled in the second quarter, Statistics New Zealand figures reveal. That’s the fastest pace since the fourth quarter of 2013 when sales volumes rose 4%.

Manufacturing volumes for dairy and meat products, the country’s two largest commodity export earners, increased 6.3% in the third quarter, the biggest gain since the 2013 fourth quarter when sales volumes soared 12%. ? Read more »

About that income inequality thingy the left always bang on about

All last year we heard various Green and Labour politicians go on about income inequality…and how the “poor” of New Zealand are sooooo hard done by.

On top of that they claim that National is evil incarnate and the poor are being hammered by National just for shits and giggles.

They point to all sorts of weird economists who have written books that upon examination the facts don;t stack up.

Buy that has never stopped the left-wing pushing a massive lie on the people, just look at global warming by way of an example.

Since they like quoting reports and overseas facts how about they report this one…the one that says that inequality isn’t growing, it is reducing….and has been for 20 years. (Kind of like there has been no warming for 20 years also)

Income inequality has surged as a political and economic issue, but the numbers don?t show that inequality is rising from a global perspective. Yes, the problem has become more acute within most individual nations, yet?income inequality for the world as a whole has been falling for most of the last 20 years. It?s a fact that hasn?t been noted often enough.

The finding comes from a recent investigation by Christoph Lakner, a consultant at the World Bank, and Branko Milanovic, senior scholar at the Luxembourg Income Study Center. And while such a framing may sound startling at first, it should be intuitive upon reflection. The economic surges of China, India and some other nations have been among the most egalitarian developments in history.

Of course, no one should use this observation as an excuse to stop helping the less fortunate. But it can help us see that higher income inequality is not always the most relevant problem, even for strict egalitarians. Policies on immigration and free trade, for example, sometimes increase inequality within a nation, yet can make the world a better place and often decrease inequality on the planet as a whole.

Read more »

More good news, NZ is third most prosperous country in the world

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While a bunch of professional protestors and losers were marching the streets protesting free trade, a new report was released that shows New Zealand is the third most prosperous nation on the planet.

New Zealand is the third most prosperous country to live in according to an?international report.

The 2014 Legatum Prosperity Index ranks 142 nations on their “wealth and wellbeing” in eight categories, including health, education, safety and security, and economy.

Norway tops the list, followed by Switzerland. The lowest ranked was the Central African Republic.

New Zealand has jumped two places from last year’s index and has ranked first in the Personal Freedom sub-index.

The increase in places was put down to the result of a large increase in the country’s Social Capital score, the report’s publishers said.

In all eight categories, New Zealand scored in the top 20.

Our Australian neighbours also make the top 10, coming in seventh on the list and ranking first in education.

The United States is ranked 10th, and has a top score in the health sub-index.

The Legatum Prosperity Index was published by the London-based Legatum Institute, which provided research on different economic and social issues around the world.

None of those loser protestors have ever bothered to stop and wonder how it is NZ places so highly on a prosperity index…it is because of free trade, that allows out economy to grow and recover quicker than other economies.? Read more »

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