Growth in the previous decade was unbalanced
- Figure 2 - Tradables and non-tradables output
- Source: The Treasury
As well as growth being weak, the years leading up to recession featured a divergence between different sectors. Output from exporters and those that directly compete with imports, often termed the tradable part of the economy, has not grown since 2005 and is currently around 2002 levels. This includes sectors such as agriculture, horticulture, mining and resources, forestry, fishing, food manufacturing and tourism, all areas where New Zealand should be benefiting from its natural advantages.
In contrast, non-tradable industries such as construction, retail and government administration grew strongly. This divergence was a drag on productivity growth.
