This report presents the findings of a literature review about New Zealand’s areas of economic strength (and critical weakness) compared with other countries. As well as considering ‘traditional’ areas of economic strength using a product/industry lens, this review deliberately takes a broad view of areas of strength.

On the former, New Zealand has current and historic strengths in agriculture, some niche manufacturers and tourism. On the latter, New Zealand has performed consistently well over time in areas such as fundamental institutions, social capital/trust, health, education and employment. New Zealand’s comparative weaknesses include our persistently poor productivity performance, and some environmental and distributional outcomes. The persistence in many strengths and weaknesses highlights the role of path dependence in New Zealand’s economic development.