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OECD Picks Solid Growth Path For NZ

3 May 2002

Finance Minister Michael Cullen today welcomed the latest OECD economic survey of New Zealand saying it assumed continuing good growth.

“The OECD is picking that the economy will grow 2.7 percent this year and 3.5 percent next year. That is a solid performance, especially given the uncertain global outlook

“The OECD report also paints a positive fiscal picture, observing that the government is on track to achieve its fiscal targets. It describes the New Zealand Superannuation Fund as “a useful step,” says net debt is likely to continue falling in relation to GDP and says the government has made various improvements of late to a regulatory framework which was already “relatively sound.”

“These are all important endorsements.

“The OECD and the government are in broad agreement on the challenges facing New Zealand and agree on some of the solutions, including the need to foster innovation and an active research culture.

“However we continue to have strong points of policy difference. The Labour-Alliance government, for example, will not privatise ACC, cut benefits, introduce a voucher system for tertiary education or impose a capital gains tax on housing,” Dr Cullen said.

Ends

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