Ministers say energy costs cut GDP by $5.2b, lowered wages by 1.4%

The decline in gas supply is just one factor hitting the economy. (Image: NZME)

Wed, 17 Dec 2025

A recently released Cabinet paper lays out ministers’ thinking on the future of the electricity sector, saying that higher prices, energy insecurity and gas constraints have already cut gross domestic product by about 1.25%, eroded real wages and hit the energy-intensive manufacturing sector hard.The paper, written in September as part of the Government’s response to the Frontier Economics review of electricity-market performance, estimates that higher energy costs have reduced GDP by $5.2 billion, lowered real wages by 1.4% and cut...

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