Spending cuts hurting growth prospects, says group of economists

Nicola Willis says her budgets will invest in frontline services and growth-enhancing infrastructure. (Image: NZ Herald)

Jem Traylen

Thu, 21 Nov 2024

A group of economists has written to the Prime Minister about the harm they believe the Government’s spending cuts are doing to the economy.The group of 15, led by former Productivity Commission chair Ganesh Nana, said the cuts hurt not just people but also the economy’s long-term ability to grow.In the letter, they said the cancellation of key infrastructure projects and sinking-lid cuts to the public service were “substantially worsening” the contractionary effects of the Reserve Bank of New Zealand’s (RBNZ) use...

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