New Zealand Economy Improves Faster than OECD Average - Media Statement

The newly updated Economic Indicators Report shows New Zealanders have a good quality of life and our economy is improving faster than the OECD average, says Economic Development Minister Pete Hodgson.

"Under the Labour-led government, our economy has been stronger for longer than at any point since the end of the Second World War, but we are ambitious to keep improving in areas such as labour productivity, national and household savings rates, innovation and research and development," he said.

"The report is encouraging in that it shows income levels (GDP per capita) have begun to slowly increase relative to the OECD average, after decades of decline. Much of this recent growth is due to near full employment, rather than productivity which is still not sufficiently strong."

"On most of the things that are important for growth the report says we are either keeping up with the OECD, or improving relative to them. For example it shows a relatively good level of entrepreneurial behaviour, improving skill levels, high rates of labour utilisation and a recent improvement in business investment."

Pete Hodgson said there were new indicators covering well-being and prosperity, regulation and tax policy, and infrastructure, and two new chapters – one looking at Auckland as an international city and another comparing New Zealand’s performance to that of Australia and its states.

"Our growth performance has been around the middle of the Australian states over the last decade or so, and while more New Zealanders are moving to Australia, the net outflow is similar to that experienced by some states to other parts of Australia."

The Minister said many of the issues the report raises are being addressed through a number of major government initiatives.

"As the report points out, these initiatives have not yet had time to impact on the picture the report presents. These include Kiwisaver, the R & D tax credit, and the latest range of initiatives to advance the economic transformation agenda, announced last week."

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