1. Question No. 1—FinanceBARBARA EDMONDS (Labour—Mana) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. BARBARA EDMONDS (Labour—Mana) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): The construction sector is continuing to grow. Statistics New Zealand reported that the volume of building activity rose 3.8 percent in the September quarter. Residential construction rose 3.1 percent while industrial and commercial building activity increased 4.9 percent. The result was above economists' expectations and has led them to revise upwards their forecast for GDP in the September quarter. The economy is expected to grow solidly in the September quarter if not as strong as in the previous June period when the economy expanded 1.7 percent. We know that 2023 is going to be a difficult year for the global economy and that this will affect New Zealand's prospects but New Zealand finds itself in a strong starting position with unemployment near record lows exports growing and tourists returning in greater numbers.Barbara Edmonds: What other reports has he seen on the economy?Hon GRANT ROBERTSON: Momentum in the economy is expected to continue into the December quarter though activity has shown signs of slowing. Statistics New Zealand report that the New Zealand activity index a composite index of activity across the economy rose 3.1 percent in October compared to the same period a year ago. Activity indicators were up in electronic card transaction activity grid demand and job advertisements together with a reduction in job seeker numbers. Both the activity outlook and the BNZ-Business New Zealand Performance of Manufacturing Index fell.Barbara Edmonds: What reports has he seen on net migration and how is it impacting on the economy?Hon GRANT ROBERTSON: Statistics New Zealand reported that there was a net gain of 3300 people arriving in October with an estimated 11400 arrivals and 8100 departures. Our immigration reset is working and attracting the overseas workers with the skills that businesses require to rebuild the economy. Yesterday's announcement to expand the Green List will further support businesses to recruit internationally to fill the shortages we have.Barbara Edmonds: What reports has he seen on the international context for the New Zealand economy?Hon GRANT ROBERTSON: Global factory output fell widely in November. In the United States its manufacturing Purchasing Managers' Index or PMI fell to 49 below the 50 level that marks growth in activity. In Europe its manufacturing PMI stood at 46.4 while in the UK and China manufacturing activity shrank for a fourth month in a row. The deteriorating global economy is affecting New Zealand's prospects as we head into next year. We'll be facing a period of high inflation which is then forecast to be followed by a shallow recession. New Zealand does find itself well positioned to deal with what the world throws at us with the Government's books in good shape and our debt levels among the lowest in the world. We will continue to carefully and responsibly prioritise our spending without unnecessarily adding to inflation. This is a balanced approach that gives us choices and flexibility to respond and support New Zealanders as the global environment changes.