Good economic growth

Stats NZ reports:

Strong growth in manufacturing saw gross domestic product (GDP) rise 0.9 percent in the December 2013 quarter, Statistics New Zealand said today.

Manufacturing activity grew 2.1 percent, driven by increases in food, beverage, and tobacco, and machinery and equipment manufacturing. Manufacturing activity is now at its highest level since March 2006.

And Labour/Greens/NZ First/Mana’s manufactured manufacturing crisis receives another death blow.

Dairy farming and dairy product manufacturing both fell this quarter, after strong increases last quarter, when production rebounded from the drought earlier in 2013.

So those who claim the economic growth is all about dairy, are wrong.

Also Labour have been saying forestry is in such dire straits that it needs all sorts of tax breaks and incentives, plus 1,000 long-term unemployed to be working in it (surely a nomination for a Darwin Award for policy, considering the already far too high accident rate). So what has happened to forestry primary product exports in the GDP? They’re at $552 million, up from $495 million a year ago – an 11.5% increase!

Also if you look at the long-term series in constant prices for forestry and logging, the GDP in 1995/96$ was $1.604b for 2013. In 2008 it was $1.199b so that’s 33.8% higher!

Also the MPI series on log exports shows they were only $711 million in 2008 and today are $2.35 billion.

I guess Labour will claim that we should be making more products here, rather than exporting logs, but you know what – you sell to match demand. If the demand is for logs, then you sell logs. If the demand is for wooden tables – you sell wooden tables.