It’s definitely too early to celebrate the end of the recession.
But the weak growth in the June quarter is a relief and we can be very pleased that government spending is down.
The dead weight of government spending which grew so much from 1999 was one of the factors which put New Zealand into recession early and until it’s addressed it will hold back the recovery.
A .4% decline isn’t much, but it’s a welcome change in direction.
The Visible Hand points out that real gross national disposable income – RGNDI – is a better indicator of our economic health than GDP.