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Statement of Intent 2014-2019

The World We Live in

Realising New Zealand's Potential

The New Zealand economy is forecast to experience solid growth - both by New Zealand standards and in comparison with other economies - over the next few years. This growth, and a return of the Crown's accounts to surplus, will show New Zealand to be a resilient and attractive place, with a lot going for it. But at the same time, action continues to be required to address New Zealand's very real, long-standing challenges.

These challenges include:

  • We are small and remote which limits the flows of people, ideas and goods to our shores, as well as our ability to participate in global supply chains. New Zealand needs to focus on how it plays its role in a globalising world and how it takes advantage of the opportunities arising from emerging economies in Asia, Latin America and Africa.
  • New Zealand needs to improve the productivity of both its tradable and non-tradable sectors, including in the large State sector.
  • A significant proportion of economic growth in the immediate future will be driven by domestic demand (reflecting the Canterbury rebuild and strengthening housing market). The challenge is to progressively facilitate growth driven by non-housing investment and by exports.
  • There is always more work to do to ensure everyone contributes to and benefits from economic growth. The State sector needs to do more to facilitate all people to participate in the economy, particularly those with social disadvantages.

Supporting the Government's Priorities

The Treasury's priorities are strongly influenced by the priorities of the government of the day. While priorities may change over the period covered by this document, the Treasury needs to remain agile and responsive to the priorities of the Government while maintaining its ability to provide free and frank first-best advice as well as its broader and longer-run stewardship responsibilities.

The current Government's priorities are to:

  • manage the Government's finances responsibly
  • build a more competitive and productive economy
  • deliver better public services to New Zealanders, and
  • rebuild Christchurch.

Through its core functions, the Treasury will contribute to all of the Government's priorities. As the Government's lead fiscal advisor we will help it manage the Crown's finances responsibly and achieve A Stable and Sustainable Macroeconomic Environment. As the Government's lead economic advisor, we will provide advice on how to build a more competitive and productive economy (Improved Economic Performance). Finally, as the Government's lead financial, economic and regulatory advisor, and through our State sector leadership and performance monitoring roles, we will provide advice on how to deliver better public services to New Zealanders (A Higher Performing State Sector that New Zealanders Trust, Delivering Outstanding Results and Value for Money) and support agencies in doing so. The Treasury contributes to rebuilding Christchurch through its State sector and economic policy advice functions.

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