The UK came out of recession with more people in work, producing less than in 2008. On the other side of the world, New Zealand also has stagnating productivity. But nobody’s quite sure why. So are fears of a global low-growth trap justified?
Although productivity growth is picking up, New Zealand still has a large productivity gap compared to other OECD countries.
Organisation for Economic Co-operation and Development (OECD) research, published by the Productivity Commission, shows that New Zealand’s broad policy settings should generate GDP per capita 20% above the OECD average, but we are actually more than 20% below average. Closing this gap would dramatically lift incomes and wellbeing for New Zealanders.