The Organisation for Economic Co-operation and Development’s (OECD) latest review of the New Zealand economy shows growth picking up and the government says it is due to its ongoing support to secure the recovery from the effects of COVID-19. 

The OECD has 38 member nations, and was founded in 1961 to stimulate economic progress and world trade. 

“The OECD Economic Outlook notes New Zealand is expected to be one of the stronger performers in the OECD, with a robust rebound due to our swift and decisive response to eliminate the virus and support households and businesses,” government Finance Minister Grant Robertson says. 

“It forecasts growth of 3.5 percent in 2021 and 3.8 percent in 2022, in line with the Budget Update, driven by solid household consumption, rising investment in infrastructure and gradual increase in tourism as borders reopen.” 

By the end of the forecast period, the report suggests New Zealand’s growth rate of 3.8 percent is expected to outperform most of the countries it compares to. 

“Australia is 3.4 percent, Japan 2 percent and the United States at 3.6 percent, while Canada matches New Zealand at 3.8 percent.”

The OECD warns that despite the improved outlook for the economy, challenges remain.

“Economic volatility is a global risk and New Zealand is not immune. There are still challenges ahead but we are in a good position to handle them,” Grant Robertson says.

“The report is consistent with the Government’s balanced approach, keeping a lid on debt while targeting support to where it’s needed most to tackle long-standing issues around climate change, housing and child wellbeing.

“Budget 2021 lifted benefits and boosted skills and training initiatives to reduce inequality and allow people to transition more easily into different types of work.

“Our housing programme announced in March includes a mix of demand and supply side measures to curb unsustainable house price and boost supply. 

“The New Zealand Green Investment Finance scheme has been quadrupled in Budget 2021 to accelerate investment in low-carbon technology,” Grant Robertson says.

National’s Waitaki MP Jacqui Dean previously told The Central App last month she believes the weathering of the economic downturn is testament to Kiwi workers, not necessarily the government. 

“It’s positive the New Zealand and global economy continues to perform better than feared at the height of the crisis, this is testament to the flexibility, ingenuity and adaptability of Kiwi workers and businesses.

“Our concern is that the Government seems to have convinced itself this means everything is fine, when it’s not.

“There are still almost 200,000 New Zealanders on the Jobseeker Benefit, which is 75,000 more than when Labour took office.

“The many thousands of jobs Jacinda Ardern’s Government promised New Zealanders its initiatives would create looks more like a pipedream.

“Labour has offered no plan for growth, and is putting our fragile recovery at risk by continuing to pile costs onto business, while becoming increasingly interventionist by the day.”