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 GDP figures released last week and today's consumer confidence figures are both indications of the global challenges that are facing the New Zealand economy. Stats New Zealand reported last week that GDP edged down by 0.2 percent in the March 2022 quarter. It is worth noting that on an annual basis the economy grew 5.1 percent and is 3.3 percent higher than the pre-pandemic December 2019 quarter. The quarterly decline in GDP was mainly due to exports falling by 14.3 percent compared with the previous December quarter reflecting the volatile global situation from the pandemic ongoing supply chain disruption and Russia's invasion of Ukraine. For the year though exports were still up 1.9 percent. Excluding the external sector the domestic economy remained resilient led by household spending and business investment. This is a tough period for many households and businesses but the New Zealand economy is well positioned to deal with these global challenges. Unemployment is at a record low. We are in a strong fiscal position with debt levels well below those of countries we compare ourselves with and we are one of only a small number of countries with the highest credit rating available from the two leading rating agencies.Barbara Edmonds: What indications has he seen about the prospects for the economy?Hon GRANT ROBERTSON: Activity in the services sector picked up in May. The seasonally adjusted BNZ - Business New Zealand Performance of Services Index for May was released yesterday and rose three points to 55.2 its highest level since June 2021 and above the long-term average. Both new orders at 62 and sales at 59.6 jumped while employment declined slightly and deliveries recovered from earlier lows. The BNZ's economist said the data was supportive of their view that there will be a solid bounce in GDP in the June quarter. Nevertheless we do know that 2022 is continuing to be a tough year for households and businesses. We will continue to support those that have been affected the most and the easing of restrictions and opening up to skilled workers and tourists will help business and the economy rebuild.Barbara Edmonds: How is the global environment impacting the New Zealand economy?Hon GRANT ROBERTSON: The volatile global environment has led the World Bank and the OECD to lower global growth forecasts and upgrade inflation estimates. The Ukraine war is the main driver of the downgrades pushing up energy and food prices in many countries. Inflation rose to 8.6 percent in the United States and is forecast to go above 10 percent in the United Kingdom. Central banks around the world are now raising interest rates to bring inflation down. For New Zealand a slowdown in growth among our trading partners will have an impact on our prospects. Current economic forecasts are that New Zealand's growth will slow from what we have experienced and they will continue to be updated as new data comes in. But as I have said before New Zealand finds itself in one of the strongest positions in the world to support Kiwis as we navigate our way through these challenging times.Nicola Willis: Has the Minister seen the IMD world economic competitiveness rankings in which New Zealand plummeted to 31st place the biggest drop of all 63 countries included in the survey this year and down from 16th when National left office?Hon GRANT ROBERTSON: Funnily enough I have seen that survey and I note in the latest version of it the following areas where New Zealand has improved: real GDP growth—Nicola Willis: Ha ha! SPEAKER: Order!Hon GRANT ROBERTSON: The member asked the question. Real GDP growth; real GDP growth per capita; labour force - long-term growth; long-term unemployment; GDP per capita; the unemployment rate; export of goods; medium- and high-tech value-added; unemployment rate - gender ratio. Yes—SPEAKER: Order! Order!