New Zealand has recently enjoyed strong economic growth, but housing and population ageing pose challenges

by David Carey, New Zealand Desk, OECD Economics Department. New Zealand enjoyed strong economic growth during 2016, driven by high net inward migration, solid construction activity, booming tourism and supportive monetary policy, although in per capita terms growth has been more in line with that in other advanced economies. The terms of trade have rebounded … More New Zealand has recently enjoyed strong economic growth, but housing and population ageing pose challenges

Lifting New Zealand’s game on productivity

by Andrew Barker, New Zealand Desk, OECD Economics Department Productivity growth will be the main driver of global economic growth and prosperity over the coming decades. For New Zealand, this represents both a challenge and an opportunity, as NZ productivity is below that of leading OECD countries (Figure 1). This problem is not new, and … More Lifting New Zealand’s game on productivity

The downsides of New Zealand’s inflated house prices

by David Carey and Andrew Barker, New Zealand Desk, OECD Economics Department In real terms, house prices in New Zealand increased more than in any other OECD country between 2010 and 2016 (Figure 1). While house price increases have supported economic growth through wealth-induced consumption growth, they have also created a number of social and … More The downsides of New Zealand’s inflated house prices