The New Zealand economy continues to grow at a modest pace. The 2012 Article IV Consultation reports that domestic demand has remained soft as households and businesses continue to deleverage amid a weak housing market and an uncertain outlook. Executive Directors endorse that output growth...

This Selected Issues paper and Statistical Appendix reviews the performance of New Zealand and compares its growth rates of output, inputs, and total factor productivity during 1978–96 with 10 other economies. This study applies a common methodology across countries, not only for the growth...

This paper reviews economic developments in New Zealand during 1992–95. According to the production measure, growth began to pick up in the middle of 1991, rising to about 3 percent in 1992/93, before jumping to nearly 6 percent in each of 1993/94 and 1994/95. Although export performance...

This Selected Issues paper and Statistical Appendix describes New Zealand’s evolving approach to inflation targeting. It describes the experience of New Zealand with inflation targeting, and discusses the motives behind the change in its approach toward a more flexible framework. The paper...

This paper analyzes the choice between public debt denominated in domestic currency and foreign currency in the context of public debt management theories. It discusses the experience of Belgium, Denmark, Ireland, Italy, New Zealand and Sweden and relates it to the theoretical arguments in favor...

This Selected Issues paper examines saving trends in New Zealand. The paper highlights that although national saving has risen since the early 1990s, it remains below the levels recorded in the early 1980s, and the increase has been insufficient to finance the additional investment expenditure...

This 1999 Article IV Consultation highlights that economic performance of New Zealand improved during the 1990s. Inflation averaged about 2 percent, compared with nearly 10 percent in the 1980s, while economic growth also picked up. Despite these improvements, the current account deficit remains...

New Zealand’s recovery has stalled since mid-2010. Spare capacity has helped contain inflation. The Reserve Bank of New Zealand (RBNZ) lifted its policy rate in two steps from a record low of 2.5 percent to 3 percent in mid-2010. The exchange rate appreciated and financial markets have largely...

The Savings Working Group in New Zealand presented recommendations in February 2011, and suggested raising national saving by 2–3 percent of GDP. The increase in net public saving in the country explains part of the reason for lower net private saving in New Zealand. Net public saving of the...

The resilience displayed by the New Zealand economy throughout the turbulence is a clear testimony of the benefits of the economic reforms. Executive Directors appreciated these developments, and cautioned against reforms that could reduce labor and product market flexibility, and suggested that...