The New Zealand economy has performed well in recent years, but bottlenecks in housing and urban infrastructure, inequalities in living standards and rising environmental pressures all pose challenges for sustaining robust growth and high levels of well-being over the long term, according to the OECD’s latest Economic Survey of New Zealand.
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This country note from Going for Growth 2015 for New Zealand identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
The per capita income of New Zealand remains low compared to other advanced OECD countries, mostly owing to a substantial productivity gap vis-à-vis top performers.
The NZ labour market is among the most flexible in the OECD, and outcomes for its young people have been among the best. However, labour-market opportunities are heavily determined by initial education, where New Zealand’s system is also successful and innovative in many ways.
As its workforce ages and major economies shift towards producing higher value-added goods and services, New Zealand will face increasing challenges to remain globally competitive and maintain high living standards. Future growth will need to come increasingly from productivity gains, and resources will have to shift towards activities that rely more on skills, technology and intangible assets.
Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.
New Zealand, as a resource based economy anxious to protect and promote its clean and green image, appropriately sees green growth as a natural direction for future development.
From the mid 1980s, New Zealand was widely considered to be a leader in liberalising product market regulation (PMR).
A considerable housing boom has been a key feature of persistently large saving investment imbalances in New Zealand over the past decade.