4. Question No. 4—FinanceRACHEL BROOKING (Labour) to the Minister of FinanceQuestion No. 4—Finance4. RACHEL BROOKING (Labour) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): Statistics New Zealand reported yesterday that labour productivity rose 2.2 percent in the year ending March 2022. That represents the largest growth since 2010. Labour productivity measures the quantity of goods or services or output produced per hour of labour. The rise in labour productivity reflects that output rose 5.4 percent a faster rate than the 3.1 percent increase in labour inputs. As I've previously said in the House we know that 2023 is a difficult and challenging year for many New Zealanders but this data is further evidence of the fact that New Zealand faces these challenges in a strong position with a more productive economy and near record low unemployment that will help New Zealanders deal with cost of living pressures.Rachel Brooking: How important is the impact of productivity on the economy?Hon GRANT ROBERTSON: The challenge of higher productivity is a long-term one for New Zealand and other countries and despite this positive report we know that it is an ongoing challenge. But the Government's strong commitment and investment in skills and training research and development industry development plans the signing of free-trade agreements and other efforts are important factors in helping lift our productivity over time which in turn delivers higher-skilled higher-wage jobs and builds a more inclusive sustainable and resilient economy.Rachel Brooking: What other reports has he seen on the economy?Hon GRANT ROBERTSON: The jobs market continues to support the economy. Statistics New Zealand reported that employment rose in February 2023 with filled jobs up 0.4 percent or 8391 to 2.34 million compared to January 2023. The majority of gains were in the services industries followed by the goods-producing industries. On an annual basis the biggest gains were in accommodation and food services followed by transport postal and warehousing and professional services. There were gains in nearly all age groups and this was also led by the number in the 15- to 19-year-old age group.Rachel Brooking: What reports has he seen on confidence in the labour market and its impact on the economy?Hon GRANT ROBERTSON: Confidence in the employment market has improved. The Westpac McDermott Miller Employment Confidence Index rose 1.5 points to 109.5 in the March quarter. A number above 100 represents optimism. Confidence improved in most regions including in the cyclone-affected regions of Tairāwhiti and Hawke's Bay where it has been driven by perceptions of upcoming job opportunities. We continue to see opportunities in regions across New Zealand.Rachel Brooking: What reports has he seen on the international context for the economy?Hon GRANT ROBERTSON: The latest OECD Economic Outlook report projects that global growth will slow from 3.2 percent to 2.6 percent in 2023. These are below-trend rates for global growth and the OECD warns that the outlook remains fragile. New Zealand's prospects will not be immune to what happens overseas but we are well positioned to face the challenges ahead and it is worth noting that our economy is 6.7 percent bigger than it was before COVID. This is not something all other countries can say. We have a solid set of Government books low unemployment growing exports and a rising number of tourists. We must continue to take a balanced approach to support New Zealanders and invest in strong public services.