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Hello. The Reserve Bank Governor said the other day
that New Zealand is likely to continue to be one of the most rapidly growing advanced
economies over the next two years. That was a reminder of just how well we've
come through the Global Financial Crisis. Our economic growth of two point four per
cent in the year to March puts us ahead of many other developed countries. For example
the United States grew by one point eight per cent in the same period, Canada by one
point four per cent, the United Kingdom by zero point six per cent and Japan by just
zero point two per cent. Those figures illustrate how difficult it's
been to make headway and as lots of households and businesses know, there are still real
challenges. But some of the recent reports justify us
thinking that we're through the worst of it. For example, last month's ANZ's Business Outlook
Survey reached its highest level of confidence since 1999.
The month before that, the manufacturing PMI index recorded its highest June result since
2004, and is currently one of the highest readings in the world.
I know that these types of statistics are not the most important thing for families
and householders. On that score, this government's steady and
sensible hand on the economy has been helpful to many households.
For example, floating home mortgage interest rates are the lowest in almost 50 years.
That's made a real difference to couples or single people trying to reduce their mortgage.
And, at zero point seven per cent, the annual cost of living increase is currently the lowest
since 1999. On top of that, in the past two years wages have risen faster than the cost
of living, which creates the conditions for families to make some gains. Even those on
our lowest income -- the minimum wage -- can be assured that as a percentage of the average
wage, it's the highest in the world. There's lots of work still to be done, but
we're ensuring that the benefits of growth are being shared. We want everyone to get
ahead.