New Zealand has a successful economy. International rankings regularly put us near the top for competitiveness, economic freedom, and ease of doing business.
At the same time, New Zealand’s per capita incomes trail those of other developed countries. Our productivity growth is anaemic. Our ability to attract high-quality international investment is limited and constrained.
New Zealand cannot rest on the laurels of past reforms. We must continue to improve our economic policy settings.
The New Zealand Initiative’s research includes analysis of regulatory and fiscal policy. We explore how incentives can promote economic development, and we investigate the social effects of economic policy.
Our research as also warned of the perils of loose monetary policy and detailed how central banks have increasingly become occupied with non-core business.
1. INTRODUCTION 1.1 The New Zealand Initiative welcomes the opportunity to comment on the Fast-track Approvals Amendment Bill (FTAAB). Read more
1. INTRODUCTION AND RECOMMENDATIONS 1.1 This submission to the Reserve Bank of New Zealand (RBNZ) on its 2025 Review of Bank Capital Requirements (the Review) and accompanying consultation paper (the Consultation paper)1 is made by The New Zealand Initiative, an independent think tank supported primarily by major New Zealand businesses. Read more
The government has viewed stronger retail grocery competition as a national priority. But zoning, consenting, and overseas investment approval processes make new entry far too difficult. Read more
1.1 This submission on the “Consultation on the Scope of the Treasury's Long-term Insights Briefing” is made by The New Zealand Initiative (the Initiative), a Wellington-based think tank supported primarily by major New Zealand businesses. In combination, our members employ more than 150,000 people. Read more
This research note questions how New Zealand has managed to sustain its large and growing current account deficits with the rest of the world without seeing a corresponding deterioration in its net international investment position (NIIP). It highlights that while New Zealand has been spending more overseas than it earns, the country’s liabilities to the rest of the world have not increased nearly as much as one would expect. Read more
Announcements earlier this month make the Emissions Trading Scheme a bit less credible over the longer term. The problem can be fixed – and relatively easily. Read more
Now that we’re getting towards the end of the year, and I’m getting towards the end of my time as a contributor to this newsletter, I’ve been thinking about the news story that most stood out for me this year and that best encapsulates my experience of this country. The obvious answer is the story of Ned the snail. Read more
The population of South Korea is about 51 million. In a hundred years, it will likely be about 11 million – a reduction of about 80%. Read more
This month’s Nobel Prize in Economics arrives at an opportune moment. The award to Joel Mokyr, Philippe Aghion and Peter Howitt for having explained innovation-driven economic growth provides a salutary reminder about what drives prosperity. Read more
Dr Eric Crampton talked to Corin Dann on RNZ's Morning Report about Labour's proposed NZ Future Fund, alongside Simplicity co-founder Sam Stubbs. Dr Crampton raised concerns about the fund's restrictions on asset sales and questioned whether it would create economic fragility rather than resilience, arguing that the $800 million in diverted dividends would need to be replaced through spending cuts or tax increases. Read more