NZ To Expect Non-Traditional Recovery
August 11, 2010 New Zealand Finance
The New Zealand Government has said that the focus for the current economic recovery will be different than that of traditional recovery, with a focus on establishing sustainable long-term returns.
Tackling current imbalances in the New Zealand economy will not be a short-term task, and will require “relentless” long-term focus and policy reform. The analysis and the Government’s future policy outlook was released on August 11th, in a speech to the New Zealand Council for Infrastructure Development, by Bill English, Finance Minister of New Zealand.
The international credit environment is too constrained for New Zealand to readily address economic imbalances, and the recovery will be based on stable growth of earnings sectors, like exports. Attention also needs to be paid by individuals, businesses and the Government to repaying the country’s overwhelming levels of debt.
In an attempt to achieve sustainable economic growth the Government’s policy decisions will revolve around six key factors: strengthening the tax system, providing more efficient public services, reforming economic regulations, raising national education and skill levels, increasing business innovation, and investing in productive infrastructure projects. According to Bill English, for the last 18 months the Government has been working to prepare new policies in line with the six new focuses, which are scheduled to be released in September.
Photo by Ewan-M