New Zealand Is Expensive, Reserve Bank Economist Says – Here’s What We Can Do About It
New Zealand is considered an expensive country, with many products priced above the OECD average, according to Reserve Bank chief economist Paul Conway. The country's high prices are attributed to low productivity and high construction costs, which have led to a 'cost-of-living crisis' for many households.
New Zealand is an expensive country, with many products priced above the OECD average. Construction services and household utilities are among the most expensive. The price of essentials like food and insurance has increased strongly over the past five years. The Reserve Bank's chief economist, Paul Conway, says low productivity is a key factor in the country's high prices. He notes that wages have risen, but not enough to keep up with inflation. To improve purchasing power, Conway says productivity growth is necessary.
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