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Annual Report of the Treasury for the Year Ended 30 June 2014

Our Outcome Performance

Improved Economic Performance

On average New Zealand's GDP per capita growth for the past few decades has been lower than most other OECD countries and this contributes to our relatively lower incomes among developed countries. New Zealand's economic growth performance relative to other countries has improved more recently but more will be needed to bring our incomes closer to those in other developed economies.

New Zealand real per capita GDP growth (production measure)
New Zealand real per capita GDP growth (production measure)   .
Source:  Statistics New Zealand

For a country of New Zealand's size, much of this growth will need to be driven by strong export performance as reflected in tradable sector growth, which is improving but still lags behind non-tradable sector real GDP growth.

New Zealand real tradable and non-tradable GDP
New Zealand real tradable and non-tradable GDP   .
Source:  Statistics New Zealand

Achieving improved economic performance requires policy changes with the potential to lift productivity across the economy and support a substantial lift in export performance. The Treasury provides policy advice that focuses on three intermediate outcomes that will contribute towards improved economic performance, which are reported on below. The OECD's 2013 Economic Survey of New Zealand provided broad endorsement of New Zealand's approach to policy priorities to lift growth, while highlighting the challenges in achieving long-term sustainable growth. An International Monetary Fund (IMF) report this year concluded New Zealand's economic expansion is becoming increasingly embedded and broad-based.

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