GDP and Inflation

Money Matters, Monumentally - Part eight: Everything is awesome, until it isn’t

Wednesday October 10, 2018 Konrad Hurren

There has been ample ink spilled lamenting and praising the statistics on business confidence; as well as much attention given to the fact that October (ish) marks a 10 year anniversary since the Global Financial Crisis (aka the Great Recession). It’s interesting that so much attention is given to these phenomena - as if crises are outlier events, while the normal state of the world is the boom phase.

Annual GDP holds at 2.7 percent in June 2018

Sunday September 30, 2018 Hugh Dixon
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Statistics New Zealand’s GDP release on 20 September 2018 showed that for the 2018 June quarter that production GDP had increased by 1 percent. This translates to an annual increase in GDP for the year to June 2018 of 2.7 percent.

Money Matters, Monumentally - Part Five

Monday April 30, 2018 Konrad Hurren

In our last article we briefly described how Fractional Reserve Banking (FRB) works to increase the money supply and thus to push up prices of goods and services which is how inflation acts as a transfer of wealth. Now, we turn to something more insidious – consumption of capital.

Economic growth in concrete terms

Tuesday March 20, 2018 Julian Williams
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Production statistics for the December 2017 quarter, released by Statistics New Zealand show the economy, as measured by Gross Domestic Product (GDP), grew 0.6 percent in the December 2017 quarter.

Why is it important to look beyond GDP and growth?

Friday February 02, 2018 Fiona Stokes

Because economics is about people, and our Prime Minister emphasised this in her speech on Wednesday, which was not a State of the Nation speech but a speech about the next 100 days of a Labour-led government.  In her speech, Prime Minister Ardern noted that she has asked the Finance Minister to accelerate the work the Treasury has begun on establishing a Living Standards Framework.  This is a clear signal of a behaviour change in policy and investment decisions, and one that BERL welcomes.  

Inflation weakens – OCR to stay low for longer

Thursday July 20, 2017 Mark Cox
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At the beginning of this year it was widely expected that, having spent five years below the Reserve Bank’s 2% target rate, inflation would start to increase. And, lo and behold, it did. In the March 2017 quarter, the annual rate of increase in the CPI reached 2.2%.

GDP and external accounts data confirm export sector in strife

Monday June 26, 2017
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The good news from the GDP data for the March 2017 quarter was of continued growth, with expansion of 3.1% for the year confirmed.  However, the good news hid the rather sobering news of the export sector contracting for the third consecutive quarter.  Consequently, exports for the March year reportedly grew by a meagre 1.2%, as meat, textiles, and metal and machinery products all slumped with sizable negative growth recorded.


Tuesday May 30, 2017 Konrad Hurren

Taking the definition of inflation as an increase in the price level of goods and services that the Reserve Bank of New Zealand (RBNZ) uses. And combined with the Policy Targets Agreement (PTA) which specifies that this measure should remain at 2% on average we could be forgiven for thinking inflation is a non-issue right now.

Stark downgrade of forecast economic outlook by RB

Thursday September 10, 2015 Dr Ganesh Nana

The widely expected OCR cut was not the most significant aspect of September’s Reserve Bank Monetary Policy Statement. The far more significant aspect was the somewhat jaw-dropping downgrade in the economic forecast picture that the Reserve Bank now paints.

Consumers Price Index (CPI): Changing with the times

Thursday November 06, 2014 Hugh Dixon

Statistics New Zealand (Statistics NZ) recently announced the results of its 2014 review of the Consumers Price Index (CPI). Statistics NZ undertakes a review of the CPI every three years in order to ensure that the CPI basket of goods and services accurately reflects the main items and services New Zealanders buy. This way Statistics NZ can accurately calculate price changes each quarter.

Rebalancing NZ’s macroeconomy

Tuesday May 14, 2013 Dr Ganesh Nana

This note assesses whether progress has been made towards rebalancing the underlying structure of New Zealand’s macroeconomy. We explore five influences driving New Zealand’s macroeconomic imbalances – tradable sector activity, the burden of inflation control, net external trade receipts, expenditure in the domestic sector, and the direction of finance.

Food prices decline in September

Tuesday October 16, 2012 Kelly Dustow

Food prices eased in September, down by 0.9 percent on the previous month and 0.3 percent on the same month last year. This is consistent with international prices, which are down 4.1 percent on the year. Prices are expected to recover along with the global economy, but also because of unfavourable growing conditions in India, Europe and the US.

August food prices flat on previous month

Monday September 17, 2012 Kelly Dustow

Food prices increased marginally in August – by 0.1% according to Statistics New Zealand’s latest release of its food price index. The most significant increase came from fruit and vegetable prices, which were 1.5% up in August. Prices for fruit and vegetables tend to rise in winter months and have been rising month on month since April.

New Zealand growth still sluggish

Monday July 16, 2012 Dr Amapola Generosa

GDP grew 1.1% in the three months to March 2012, taking annual growth to 2.4%. The figure was a positive surprise, incorporating conservative growth in primary and manufacturing industries and nearly flat domestic spending.  Looking at the detail however, the quarterly figure was helped by a large increase in the statistical discrepancy.  Without this contribution growthbin the March quarter would have been a more modest 0.6%.

Food prices decline

Tuesday April 17, 2012 Kelly Dustow

According to Statistics New Zealand’s latest food price index, overall food prices in March were down 1 percent compared to February. In addition, prices were down for all five broad categories: fruit and vegetables, meat, poultry and fish, grocery food, restaurant and ready-to-eats, and non-alcoholic beverages.

Prices of capital goods are on the up

Monday February 27, 2012 Jason Leung-Wai

The Capital Goods Price Index rose 0.4 percent in the December 2011 quarter, taking the annual increase to 1.1 percent. This slight upward trend follows a very subdued period where the index remains at the same level as the June 2009 quarter.

Pricey Pumpkin Soup

Monday February 20, 2012 Jason Leung-Wai

Overall, food prices in January 2012 didn’t change from December 2011. For the year however, food prices were up by one percent.