Oecd Economic Surveys - New Zealand 2019

Basic Statistics of New Zealand, 20181
Executive summary
Key policy insights
	Recent economic developments, macroeconomic and labour market policies
		Economic growth has stabilised, but capacity constraints remain tight
		Low productivity impedes well-being
		Macroeconomic policies remain expansionary
			Review of the Reserve Bank Act
			Proposed increase in bank capital requirements
			Fiscal policy is set to tighten
		The government plans labour market reforms to increase low-paid workers’ wages
			Minimum wages
			Fair Pay Agreements
			Pay equity
		Economic growth is projected to remain around potential
	Well-being policy challenges
		Well-being outcomes for some groups lag behind those for others
		Integrating a well-being approach in policymaking
	Raising well-being through more environmentally sustainable growth
	Improving well-being through better migration policy
		Economic and labour market effects
			Attracting higher-skilled temporary migrants and reducing exploitation
			Improving labour market outcomes for immigrants
	Improving well-being through better housing policy
		Enabling supply of additional housing
		Improving outcomes for low-income renters
	References
Thematic chapters
	Chapter 1.  Well-being: performance, measurement and policy innovations
		Introduction
		New Zealand’s well-being in an international context
			The big picture on New Zealand’s well-being
			Key opportunities for improving New Zealand’s well-being
				Reduce health inequalities, and address mental health and obesity challenges
				Improve well-being for children and youth
				Secure better material conditions for all and reduce high economic vulnerability
				Raise outcomes for Māori
				Curtail greenhouse gas emissions and biodiversity loss; improve water quality
			The 2019 Budget priorities and the international evidence on well-being
		New Zealand’s Living Standards Framework from an international perspective
			Frameworks for well-being in OECD countries
				The Living Standards Framework’s conceptual underpinnings
			From frameworks to measurement: the Living Standards Framework Dashboard
				The Dashboard’s indicator coverage is broadly consistent with that in other countries, but includes some gaps
		Applying a well-being lens to policy in New Zealand
			Implementing a well-being approach to policy
			Building a joined-up well-being information system that can meet new policy needs
				Good quality, timely, and comprehensive data play a crucial role in policy advice
				A more joined-up approach to defining well-being is needed in government
				A small set of priority indicators could help raise awareness and focus attention
			Adapting the policy toolkit to put well-being at the centre
				The budget process is a key mechanism to operationalise a well-being approach
				Existing policy tools already account for several aspects of people’s well-being, albeit unevenly
				Greater guidance and oversight to ensure truly multidimensional analysis
			A joint effort to develop the evidence base and map the intervention logic between policy levers and well-being outcomes
				Linking outcomes back to policy systems
				Existing networks for evidence-informed policy should be encouraged to adopt a multidimensional well-being approach
			Making a long-term commitment and embedding the approach in the machinery of government
		Notes
		References
	Chapter 2.  Improving well-being through migration
		Emigration has been high in recent decades
			Emigration increased in response to better economic opportunities abroad
			High-skilled emigration is a drag on the economy
		Immigration is high with a focus on attracting high-skilled people
			New Zealand has a managed immigration model that targets skilled people
			Temporary immigration has expanded markedly over the past two decades
		Net migration contributes to high population growth and ‘brain exchange’
		Migration is increasing the cultural diversity and education attainment of New Zealand’s population
			Immigrants have become a large and increasingly culturally diverse part of New Zealand’s population
			Immigrants and their children are more highly educated than the native-born population
		Immigrants in New Zealand have high levels of well-being
		Immigration has small positive effects on long-run incomes
			Immigration may increase GDP per capita modestly in the long run
			Immigration may boost productivity through agglomeration economies and innovation
			Immigration seems to have a positive net fiscal impact
		On average, immigration has no negative effects on the wage or employment of New Zealanders
		Immigrants under-perform in the labour market, but the gap closes over time
		Selecting immigrants with better labour market integration prospects
			Attracting higher-skilled temporary migrants and reducing exploitation
			The points system for skilled immigrants has been realigned to emphasise characteristics associated with better labour market outcomes
		The government supports an extensive array of immigrant settlement programmes
			Improving labour market outcomes for spouses/partners of skilled immigrants and for former international students who have graduated is a priority
			Mentoring and bridge programmes could help improve labour market outcomes
			English language programmes could be more effective
			Programmes to support immigrant inclusion and counter racism are working well
		References
	Chapter 3.  Improving well-being through better housing policy
		Housing is an important determinant of well-being
		Housing affordability has worsened
			Low-income renters have been severely affected
			Māori have poor housing outcomes
			Housing quality is low
			A number of factors have contributed to unaffordability
		Increasing the responsiveness of housing supply
			Augmenting infrastructure funding and financing for local government
			Reforming the slow and prescriptive building consenting process
			Increasing productivity in the construction industry
			Better targeting KiwiBuild
		Avoiding policy measures that unnecessarily fuel demand
			Tax settings favour investment in housing
			Eliminating poorly targeted home ownership subsidies
		Supporting low-income renters
			Increasing the supply of social housing
			The role of Accommodation Supplement payments
		Notes
		References
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