2019 OECD Economic Surveys: New Zealand 2019

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Well-being in New Zealand is generally high, although there is room for improvement in incomes, housing affordability, distribution, water quality and GHG emissions. Economic growth is projected to remain around 2½ per cent. The main risks to the outlook are rising trade restrictions and a housing market correction. Labour market reforms have been initiated to increase wages for the low paid but will need to be implemented cautiously to minimise potential adverse effects. Substantial planned increases in bank capital requirements should reduce the expected costs of financial crises but might reduce economic activity. To improve the well-being of New Zealanders, the government is amending legislation to embed well-being objective setting and reporting, developing well-being frameworks and indicator sets and using well-being evidence to inform budget priority setting and decision-making. Immigration increases well-being of both immigrants and most of the NZ-born, although associated increases in housing costs, congestion and pollution have had negative effects. A raft of measures is underway to make housing supply more responsive to demand. However, strict regulatory containment policies, which impede densification, need to be replaced by rules that are better aligned with desired outcomes and alternative sources of finance found to relieve local government infrastructure funding pressures.


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Basic Statistics of New Zealand, 2018

(Numbers in parentheses refer to the OECD average)

This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.The economic situation and policies of New Zealand were reviewed by the Committee on 13 May 2019. The draft report was then revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 13 June 2019.The Secretariat’s draft report was prepared for the Committee by David Carey, Andrew Barker and Carrie Exton under the supervision of Vincent Koen. Statistical research assistance was provided by Isabelle Luong, editorial assistance by Sisse Nielsen and the Survey was prepared for production by Carolina Gonzalez. The Survey also benefitted from contributions by Andrés Fuentes-Hutfilter, Valéry Dugain, Lara Fleischer and Margreet Frieling.The previous Survey of New Zealand was issued in June 2017.Information about the latest as well as previous Surveys and more information about how Surveys are prepared is available at www.oecd.org/eco/surveys.


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