This report shows New Zealand’s productivity performance at the level of the total economy, sectors, and individual industries. It illustrates trends in New Zealand’s productivity performance through time and compared to other OECD countries. It presents figures on business dynamics and the use of inputs such as labour and capital.
Stats NZ’s data for labour productivity in the measured sector go back to 1996 and since this date productivity growth has averaged 1.4%. In the 10 years since the Global Financial Crisis labour productivity growth has slowed, with the average annual labour productivity in the measured sector being 1.0% between 2008 and 2018.
To illustrate the consequences of lower productivity growth, if the recent slowdown was to become permanent and New Zealand continued to achieve 1.0% productivity growth across the total economy (rather than 1.5% as assumed in the Treasury’s long-term fiscal model), then by 2059-60 real GDP would be around 18% smaller than otherwise. This is equivalent to $16,300 per person (in constant 2009/10 dollars).