New Zealand: Selected Issues

February 8, 2016

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Format: Chicago

New Zealand: Selected Issues, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This paper discusses prospects for potential growth, house prices, household debt, and financial stability risks, and tax policy reforms in New Zealand. Despite having world-class institutions and strong policy framework, income levels remain low relative to other Organisation for Economic Co-operation and Development (OECD) countries. During 1980–2014, per capita income levels have remained about 20 percent below the OECD's average income. Longstanding structural issues need to be addressed to boost potential growth. House prices and household debt have increased rapidly in New Zealand over the past two decades. New Zealand's low national saving rate is a source of vulnerability and likely contributes to the relatively high interest rates needed to attract foreign capital.

Subject: Housing, Housing prices, Income, National accounts, Prices, Production, Productivity, Tax incentives, Total factor productivity

Keywords: CR, Global, House price, Household debt, Housing, Housing prices, Income, Interest rate, Investment, ISCR, OECD Productivity database, Productivity, Taxation, Total factor productivity, User cost approach, User cost model

Publication Details

Pages:

46
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/040
Stock No:

1NZLEA2016002
ISBN:

9781475522549
ISSN:

1934-7685

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