The latest KPMG Growth Promise Indicators (GPI) index ranks New Zealand 9th for our productivity potential, against a total of 180 countries surveyed.

The index finds that New Zealand has maintained its 9th position from last year, with a score of 7.9 out of 10 placing New Zealand just behind Finland, Norway and Sweden, and ahead of Canada, Germany, Ireland and the UK.

Quality institutions and human capital earn high scores

New Zealand achieved its highest scores for ‘Quality of its institutions’ and ‘Human capital’.

“Factors such as regulatory quality, transparency of government policymaking, business rights and relatively low levels of corruption are key contributors to our high scores in these areas - 8.61 and 8.20 respectively,” says Souella Cumming, KPMG Partner. New Zealand also benefits from a stable, well developed education system and relatively higher life expectancy.

But more work needs to be done

However, New Zealand’s growth potential continues to be hampered by poor performance in ‘Openness’ when it comes to foreign direct investment (FDI) and total trade, and macro-economic stability. The GPI Index report also shows that New Zealand needs to do more when it comes to the quality of its infrastructure.

“A key contributor in driving our growth is the Government’s Wellbeing Budget, with its intent of tackling long-term challenges such as child poverty, mental health, and homelessness, while maintaining fiscal responsibility,” says Souella. “Plans to transform New Zealand’s Education system and focus on infrastructure are also critical to ensure New Zealand’s resilience and long term sustainability.”

About KPMG New Zealand

KPMG New Zealand is part of is a global network of professional services firms providing Audit, Tax and Advisory services.

We’re committed to fuelling New Zealand’s prosperity – for the benefit of all New Zealanders - helping New Zealand’s businesses grow and succeed, the public sector to achieve more, and our communities to prosper.

KPMG New Zealand works closely with the public sector, and understand the unique nature and challenges the public sector faces. Our clients include public services entities, state services and state sector organisations, and organisations operating in the wider public sector.

The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

© Scoop Media