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As a small, open, and geographically distant economy, functioning supply chains that underpin specialisation and trade are important for the prosperity and wellbeing of New Zealand. Unfortunately, supply chain disruptions are here to stay, and the new normal is potentially both more volatile and uncertain.
In the aftermath of recent shocks, including the COVID-19 pandemic and impacts of Cyclone Gabrielle, examining the resilience of New Zealand’s economy has become increasingly important. In this inquiry, economic resilience is defined as the capacity of industries and associated communities to anticipate, prepare, absorb, recover and learn from supply chain disruptions – focusing on the interdependence of industries and communities in Aotearoa, the importance of proactively investing in resilience, and how the unique features of New Zealand’s economy shape those investments in resilience-enhancing policy.
The Productivity Commission has released this issues paper for public consultation. The paper outlines the Commission’s current thinking on supply chains and economic resilience in Aotearoa New Zealand and overseas, and poses questions aimed at guiding stakeholder engagement.