From: Gordon@leaf.net.nz

https://www.rnz.co.nz/news/business/572373/new-zealand-income-growth-one-of-the-worst-in-the-world?fbclid=IwZXh0bgNhZW0CMTEAAR43xnHVLk1UMKF3AArJqMO-cKFLoMzrwZjt7WW-FMd9inJMzK6zASP8Zbf0Tw_aem_-MeCZ4RpsTgGuLVL-bZDjA

It has taken some time but at last RNZ has listened to those in the know as
to why the NZ economy is crawling along in the result of overspending
trench.

From the article

" Infometrics chief forecaster Gareth Kiernan said it was another example of the country having to pay the price for its Covid overheating.

"We can't expect activity to go back to those levels any time soon. That's
why the economic recovery is taking so long to get going and why next
year's growth figures don't look that exciting in the context of how
poorly the economy has performed since 2023; or why the construction industry is being naïve in hoping that a residential consent rate of 34,000pa will be the bottom of the cycle.

"We went up such a long way during the pandemic, borrowing growth from the future through ultra-low interest rates and massive government borrowing and spending, that the return to 'normal' levels of activity means that current conditions feel terrible by comparison."

Now the next thing to hope for is that, the voters do not place a Government
in power which does the same things again.

BNZ chief economist Mike Jones agreed it reflected the state of the economic cycle in New Zealand compared to other parts of the world.

"We've gone from having one of the tightest labour markets anywhere through 2022 and 2023 to now being a little out of step in the other direction, with labour demand weaker and consequently spare labour market capacity more obvious here than the likes
of the US, Australia, or even the UK. Wage growth has consequently come off the boil a little faster in NZ."

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