The Government and New Zealanders have worked together to face the challenges of a country left in recession by Labour, a global financial crisis, and devastating earthquakes in Canterbury.
There is still more ahead of us, but our hard work is paying dividends. As the economy continues to grow, we are seeing new jobs being created and unemployment falling. New Zealand’s annual economic growth of more than 3 per cent puts us among the top handful of countries in the developed world.
Our exports are growing as are our construction and service industries as they catch up on house building in Auckland and Christchurch, and that’s spreading around the country.
Our two-way trade with China is booming – up from around $9 billion five years ago to more than $18 billion today. Prime Minister John Key and Chinese President Xi Jinping have just set an ambitious new goal for two-way trade of $30 billion by 2020.
Business confidence is approaching a 20-year high – with a strong showing for hiring intentions and investment for growth.
Average wages are increasing faster than the cost of living, with around 66,000 extra jobs created in the past year and the outlook is for further job growth.
Manufacturing activity is now at its highest level since March 2006. Labour productivity increased 2.1 per cent in the year to March – well above the average annual rate of 1.6 per cent since 1996.
Investment in plant, machinery and equipment is up 7.5 per cent, confirming businesses are investing for the long-term to support productivity and higher wages.
Consumer confidence is running at a nine-year high. People are not getting carried away but they are spending a bit more because they feel more secure about their jobs and incomes.
Consumer prices rose just 1.6 per cent in 2013 and food prices were up just 0.2 per cent in the past year.
Interest rates, while increasing, remain near 50-year lows.
The Government is on track to surplus next year which we will build on in the coming years so we can repay debt and buffer New Zealand from any future shocks.
Providing we stick with the National-led Government’s successful programme, New Zealanders can lock in the economic gains we’re starting to see through more jobs and higher incomes.