GDP figures mask tougher times ahead

Responding to today’s release of the March quarter 2026 GDP figures, Taxpayers’ Union spokesman Austin Ellingham-Banks said:

“0.8 percent growth is welcome, but it is no cause for complacency. Most of it was banked before the Iran shock arrived, so the June quarter will be the real test.”

“We go into that test from a weak starting point. GDP per capita is still -2.18 percent below where it was when this Government took office, and Treasury’s 3.1 percent growth forecast for 2026/27 looks heroic compared with the more sober outlook from the Reserve Bank and NZIER.”

“Worse, the fiscal cushion has already been run down. Minister Willis is spending more in real terms than her predecessor, and debt now sits above $140,000 per household.”

"Treasury, Moody’s and Fitch have all sounded the alarm. The longer the Government waits to rein in spending and pay down debt, the tougher the choices will get."