Weekend Herald

Honourable mentions

- Liam Dann

The NZ Initiative’s Oliver Hartwich went for a more structural pick, in productivi­ty growth, which most economists agree is a missing ingredient in New Zealand’s economic story.

Hartwich points to the OECD graph for productivi­ty as expressed by “GDP per hour worked”. New Zealand’s growth path is not flash.

“Not good enough for a country that likes to think of itself as broadly successful,” he says.

“We need to do a lot better to be able to afford the education, health care and general quality of life we aspire to. Wellbeing is just a hollow intention without productivi­ty.”

Hartwich also highlights the rise of negative-yielding debt around the world as a symptom of the worrying imbalances that remain in the global economy.

Economists will also still be keeping an eye on global growth in 2020, particular­ly commodity prices, news out of China and production indicators like the PMI and Global IP (industrial production).

Kiwibank’s Kerr says: “We’re an island on the edge of the Earth with a huge reliance on global trade and finance. In a world grappling with trade wars and threats of Brexit, indicators of global production are important. Global growth forecasts have been ratcheted down all year. Recent indicators suggest a solid improvemen­t into 2020. Global IP data will give us a good guide on the sustainabi­lity of the recent improvemen­t.”

Newspapers in English

Newspapers from New Zealand