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New Zealand productivity among worst in OECD

July 3, 2023
in Business
New Zealand productivity among worst in OECD
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Wide Angle View Of Busy Design Office With Workers At Desks - open plan office

The Productivity Commission’s new study shows the growth in productivity in recent decades has been achieved by more New Zealanders working longer hours. (file image)
Photo: 123rf

New Zealand’s productivity is one of the worst among developed economies and needs serious long-term commitment and investment to turn it around, according to a new report.

The Productivity Commission has just released a new study showing the growth in productivity in recent decades has been achieved by more New Zealanders working longer hours.

Productivity Commission chair Ganesh Nana said the country’s productivity record left a lot to be desired, and it was taking a toll not just on economic output but also personal wellbeing.

“This is not a recipe for sustained improvements in material living standards, let alone those non-material aspects of family time, leisure hours, and feeding the mind as well as the body,” Nana said.

New Zealand was “capital shallow” and ranked 26th out of 37 OECD countries in its spending on research and development.

Nana said the country needed a long-term strategy and commitment to change through investment.

“Innovation and technological change, which require appropriate investment efforts, are critical to productivity growth.”

He said the government needed to provide leadership, but in a manner which involved the private sector, iwi and Māori businesses, academic research and development efforts, and took a long-term view not of a few years but “across years, decades, and generations.”

“Improving productivity requires investments to maintain, enhance, and improve the capabilities and qualities of the range of productive factors, institutional arrangements, and resources on our watch.”

Nana said improved productivity would deliver not just improved economic outcomes but also an improved quality of life and standard of living.

“The choices we make today influence the productivity and standard of living, waiora, and wairua tomorrow, and for future generations.”

The full report is available on the Productivity Commission website.

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/493102/new-zealand-productivity-among-worst-in-oecd-productivity-commission-report

Tags: businessproductivityZealand
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