Good and bad economic news

The 1.1% increase in GDP in the third quarter of 2025 is great news. It is well above what the Reserve Bank was forecasting, and above most private sector forecasts.

14 out of 16 industries grew with the largest increases being $136m in business services, $115 million in manufacturing and $74 million in construction.

But it is only one quarter. We need to keep the momentum going.

Two days earlier the half year fiscal update showed that the return to surplus had slipped away by another year. The structural deficit Labour left the Government is a real problem, and the coalition Government needs to do whatever is necessary to get back into surplus and repaying debt before the next global economic shocks hits.