Back Of The Envelope TPPA Calculation

MFAT’s generous prediction for the GDP increase we could see as a result of being partner to the TPPA is $2.7 billion (real 2007 NZ dollars) 0.9% over the course of 15 years. Here’s what that means in more tangible terms

Some maths to work out the annual increase in GDP we can expect, if the increase is spread evenly:

100% + 0.9% = (100%+x)^15
100.9% = (100%+x)^15
100.06% = 100%+x
x = 0.06%

That $2.7 NZD really doesn’t stack up to much when you put it in these terms, it won’t be noticeable at all when you consider our GDP growth currently.

Leave a Reply

Your email address will not be published. Required fields are marked *