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New Zealand is enjoying strong economic growth, driven by booming tourism, high net immigration, solid construction activity and supportive monetary policy. The fiscal position is sound, with low public debt and a balanced budget. The major economic vulnerability emanates from high levels of household debt associated with rapid increases in house prices, which have reached high levels relative to fundamentals. Barriers to expanding housing supply are being reduced, and macro-prudential measures have been taken to contain financial stability risks, but further measures may be needed. While the short-term economic outlook is strong, there are longer-term challenges from low productivity growth, a changing labour market and some growing environmental pressures. Addressing these challenges would secure sustainable improvements in well-being for all New Zealanders.
SPECIAL FEATURES: IMPROVING PRODUCTIVITY; THE CHANGING LABOUR MARKET
Scrivi una recensione per "OECD Economic Surveys: New Zealand 2017"
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