Hosking on the GDP figures

Rob Hosking at NBR has a look beyond the 3.3% GDP growth figure. He says the more important data is:

• Real national disposable incomes are up 7.3% over the year (largest increase since 1987)
• Final private consumption rose only 2.7% (3.5% was expected)
• Hence people are saving, not spending, the increased incomes
• This will, if continued, see NZ’s external debt reduce

I can only presume Labour have been saying we have a savings crisis, which is why the situation is improving.