The Government has been praised for spending it up and providing a fairer New Zealand, but who is paying for it in these post-Covid times?
Back in February 2020, Alison Brook from Massey's Knowledge Exchange Hub wrote in a piece for interest.co.nz that while many advanced countries have suffered from falling productivity growth since the global financial crisis, New Zealand’s productivity performance has been lacklustre since the mid-1990s.
According to the New Zealand Productivity Commission in a recent report, if productivity stays at the current level of growth, then real GDP will be 18 percent lower in forty years’ time.
New Zealand’s GDP per capita is 30 percent below the OECD average, and similar to that of Mexico, Greece, Portugal, Israel, and Japan – and this was pre-Covid)
Professor of Economics and Innovation at Massey University, Christoph Schumacher joined Kerre McIvor to discuss how productivity can be improved - and why New Zealand needs to rethink what sectors it invests in.