Poor productivity: Slower wage growth, superannuation woes expected

Author
Newstalk ZB,
Publish Date
Fri, 7 Jun 2019, 6:50AM
He says lower productivity means slower wage growth - which will eventually hit superannuation too. Photo / Getty Images.

Poor productivity: Slower wage growth, superannuation woes expected

Author
Newstalk ZB,
Publish Date
Fri, 7 Jun 2019, 6:50AM

New Zealand's productivity growth has averaged just one per cent in the past decade, despite treasury's models still assuming we're sitting on a 1.5 per cent growth.

And we could hit some economic problems as a result.

Productivity Commission economics and research director, Dr Patrick Nolan, says it's something economists worry about, but families should too.

He says lower productivity means slower wage growth - which will eventually hit superannuation too.

Nolan told Kate Hawkesby New Zealand's had poor productivity levels for decade - the current average a hit from the global financial crisis.

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