Lies, Damned Lies and Statistics: the truth about the “rock star economy”
By Mike Treen, Unite National Director
(Reprinted from The Daily Blog)
The business media is all in an excited state over the fact that the headline growth rate for the New Zealand economy is at 3.6% for the year ending June.
What they don't tell you is that because of the artificial boost to the population as a result of the government opening the taps for new migrants the actual annual per capita growth rate is only 0.7%.
"We are seeing low-quality growth in what New Zealand produces," says CTU Economist Bill Rosenberg commenting on the June GDP growth statistics released today. "Not all growth is equal."
"Much of the growth is driven by the rising population, with high net immigration. Per person, GDP rose only 0.7% over the year - well below the 1.6% per year average since 2012 (after the recession ended), and far below the 2.6% per year average from 2000 to 2007, before the recession began.