1. Question No. 1—FinanceDr DUNCAN WEBB (Labour—Christchurch Central) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. Dr DUNCAN WEBB (Labour—Christchurch Central) to the Minister of Finance: What recent reports has he seen on the New Zealand economy?Hon GRANT ROBERTSON (Minister of Finance): The economy rebounded strongly in the June quarter. Last week Statistics New Zealand reported that GDP rose 1.7 percent in the three months to June which was at the top end of economists' expectations. The economy is now 4.8 percent larger than before the start of the pandemic ahead of most countries that we compare ourselves with. Despite a challenging global environment our economic plan is working and the resilience of the economy means New Zealand is in a strong position to support our people and take advantage of the opportunities available from our strong pandemic response.Dr Duncan Webb: Which sectors contributed to growth in the June quarter?Hon GRANT ROBERTSON: The services sector which makes up two-thirds of the economy rose 2.7 percent as New Zealanders and returning overseas visitors spent more on transport accommodation eating out and sports and recreational activities. It's also worth noting that exports jumped 20.5 percent boosted by the return of tourists and ongoing strong agricultural prices.Dr Duncan Webb: What reactions has seen to growth in the June quarter?Hon GRANT ROBERTSON: Well Westpac's economists said it was a strong result while Kiwibank said the Kiwi economy staged an impressive rebound following the Omicron disruption. ASB's economists said the underlying base momentum of the economy should continue and is a testament to the underlying resilience of the New Zealand economy.Dr Duncan Webb: How did New Zealand's growth compare internationally?Hon GRANT ROBERTSON: Well the timing of COVID variants and their economic impact has differed between countries and it does make it difficult to make meaningful comparisons on a quarterly basis. A marker that we can use though is where the economy is now compared to where it was before the pandemic started. On that basis New Zealand's economy is 4.8 percent larger than the pre-COVID December 2019 quarter compared with 5.5 percent in Australia 2.6 percent in the US 1.8 percent in the EU 1.7 percent in Canada 0.6 percent in the UK and 0.2 percent in Japan.Nicola Willis: Does the Minister consider that the reason most New Zealanders aren't quite as cock-a-hoop as he is about the state of the economy could be because in the past year real wages declined by 3.7 percent—that is typical New Zealanders are going backwards as prices rise faster than wages?Hon GRANT ROBERTSON: No; the member is in fact wrong. Median weekly earnings from wages and salaries rose by 8.8 percent in the June 2022 quarter—[Holds up sheet of paper] right there for the member.Dr Duncan Webb: What reports has he seen on the international context for the New Zealand economy?Hon GRANT ROBERTSON: Well the World Bank has warned that the global economy may be edging towards recession in 2023 with global growth slowing sharply. New Zealand is of course not immune to these developments but we are well positioned to respond to the challenges. Unemployment is near record lows exports are rising and our debt levels are among the lowest in the world. We're investing in our future to deliver a high-wage low emission economy that provides greater security in both good times and bad. There are tough choices ahead for us but New Zealand is well positioned to navigate a volatile and uncertain global environment.Nicola Willis: Who should New Zealanders believe about the state of the economy that Minister who continues to show off about it or the Parliamentary Library who says that real wages have declined by 3.7 percent and many New Zealand families who feel that economic times are tougher for them than ever?Hon GRANT ROBERTSON: Perhaps we could refer to the views of a neutral commentator here Standard and Poor's. I'll just read from their executive summary—I don't know if that's a concept the member's familiar with—it says the agency once again praised the Government saying New Zealand [had] weathered the pandemic better than most countries in terms of health fiscal and economic outcomes."David Seymour: Would the Minister prescribe that Standard and Poor's report as recommended reading for the majority of New Zealanders who say the country is going in the wrong direction under his Government?Hon GRANT ROBERTSON: We on this side of the House acknowledge that 2022 has been a hard year for many people. That's why our Government has stepped up by increasing benefits by making sure there's a cost of living payment by making sure that we're supporting New Zealanders with lifts to the minimum wage. All of these things that the ACT Party has opposed—we're actually supporting New Zealanders.David Seymour: So just to be clear has it been a hard year or is everything going fantastically?Hon GRANT ROBERTSON: This side of the House has acknowledged time and time again how hard it has been for New Zealanders. The good news is the New Zealand economy is resilient. We have one of the lowest unemployment rates in the OECD. We have one of the lowest levels of public debt in the OECD. We've got growth so we're 4.8 percent bigger than we were before the pandemic. There is every reason to be optimistic even though it has been a hard year for many people."