Economic "Growth": Why We Still Feel Broke

Andy Milne of Christian Savings unpacks NZ's latest GDP figures, which showed just 0.2% growth for the June quarter (1.7% annually) alongside rising inflation and unemployment, and stagnant wages and house prices. He explains the gains are patchy - largely driven by construction and felt mainly in the regions rather than Auckland or Wellington - while petrol and diesel price hikes act like a surcharge across the whole economy.

Milne notes underutilisation sits at 13%, meaning many employed people can't get the hours they want, squeezing households further. He weighs up the debate among economists over whether the Reserve Bank is right to signal further OCR hikes given inflation is largely externally driven, and describes the housing market as stuck in a standoff between cautious buyers and sellers unwilling to take a loss - a flat market he says suits first-home buyers but poses risks for an economy heavily reliant on housing. ([www.christiansavings.co.nz](https://www.christiansavings.co.nz))

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