Te Whanganui-a-Tara – The OECD’s 2022 economic survey for New Zealand has says Aotearoa for its response to the covid pandemic correctly.
The survey also found New Zealand as one of the lowest mortality rates in the world while the economy has proved strong and resilient.
The OECD, based in Paris, carries out country surveys every two years to review its members’ economic policies.
The 2022 report says the economy is operating above pre-covid levels, while the government’s financial accounts are expected to return to surplus sooner-than-expected. Inflation is set to fall across the rest of 2022 towards the Reserve Bank’s target midpoint of two percent.
New Zealand’s reaction to the pandemic was to secure its best economic response, with unemployment at record lows and wages rising.
The government’s gooks continue to outperform forecasts and Aotearoa has one of the most favourable debt positions in the world, according to finance minister Grant Robertson.
This has put the country in a strong position to continue our balanced approach and meet the challenges ahead as the pandemic continues to disrupt the global economy while tackling long-standing issues around climate change, housing and child wellbeing.
Robertson says they have considered wellbeing outcomes as part of the health response to covid and in the design of the economic support measures.
The wellbeing objectives for Budget 2022 will reflect an increased emphasis on the need to address housing access and affordability and the ongoing but evolving impacts of covid.
On housing, the OECD says the government’s measures to cool the housing market and boost supply has seen record house building and consents in recent times and will help improve affordability.
As part of the wellbeing approach, Budget 2022 will include a focus on health reforms and investing in initiatives to reduce emissions and met our climate goals.
The government is making significant investments in establishing the new entities that will replace much maligned district health boards.
Climate change is also of growing importance for Aotearoa’s long term economic and fiscal management. The OECD says New Zealand has improved the legal framework for reducing greenhouse gas emissions, but there is further work to do to reach the net zero goal by 2050.
The OECD has a range of policy recommendations, with particular focus on digital technologies. The survey shows New Zealand can realise significant benefits from a continued focus in the digital economy.
New Zealand has good infrastructure in the ultra-fast broadband initiative and rural connectivity. But the OECD highlights the need for Aotearoa to build a solid pipeline of digital skills, and to encourage more businesses to use digital tools.
The OECD also reinforces the need for a national digital strategy, something the Jacinda Ardern government is progressing for a digital strategy for Aotearoa.
