1. Economic Survey of New Zealand, 2007
- Publication Date:
- 04-2007
- Content Type:
- Policy Brief
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- New Zealand has undertaken wide-ranging reforms over the past 20 years and now has one of the most flexible and resilient economies in the OECD. However, a large external deficit, very low household saving and still-strong inflation pressures indicate an unbalanced growth pattern. There are some signs that these imbalances are starting to unwind, but the short-term outlook remains uncertain. On current settings, it will take time for inflation pressures to dissipate and, notwithstanding a large fiscal surplus, strong growth in government spending is complicating the stabilisation task of the Reserve Bank. Moreover, additional fiscal stimulus beyond present plans – whether from spending increases or tax reductions – would delay internal and external rebalancing and exacerbate the adjustment required to ensure fiscal sustainability in the longer term.
- Topic:
- Development, Economics, and Markets
- Political Geography:
- Australia/Pacific and New Zealand