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The price for overcaution

It says a lot about this economic crisis when a forecast of -4.5% annual growth is regarded as good news. Yet that was the forecast the International Monetary Fund released yesterday. Unfortunately, it was not for New Zealand but for Australia. In New Zealand’s case, the IMF kept its 2020 forecast at -7.2%. That is worse than Australia and the global GDP forecast at -4.9%. At least it is better than the -10.2% predicted for the Eurozone. Read more

Dr Oliver Hartwich
Insights Newsletter
26 June, 2020

Playing politics with the Public Health

The public health system is a political football. Every change of administration is an opportunity to boot the ball at a different set of goalposts. Occasionally, all it takes is a change of Minister. Professor Robin Gauld, director of the University of Otago’s Centre of Health Systems and Technology, has published at least two books and a substantial academic article on the structural instability of New Zealand’s healthcare system since the 1980s. Read more

Dr Bryce Wilkinson
Insights Newsletter
26 June, 2020
Policy Point Borrowing to Save Retirement Income Policy After Covid 19 3

Policy Point: Borrowing to Save: Retirement Income Policy after Covid-19

The Government’s response to the economic challenges of Covid-19 has primarily focused on new spending which will balloon public debt from 19% of GDP in 2019 to 30% in 2020 and peak at nearly 54% of GDP by 2024. It is only expected to modestly fall to 42% of GDP by 2034.A clear choice has been made to defer paying the costs of the Government’s economic response to the Covid-19 crisis into the future, either by lower levels of public... Read more

Dr David Law
Policy Point
19 June, 2020

Media Release: New report suggests NZ’s ‘rainy day fund’ could help solve economic pain of Covid-19

Wellington, 19 June 2020 - To plug the fiscal gap created by Covid-19, the Government must rethink its retirement income policies, according to a new report by The New Zealand Initiative. So far, the Government’s primary responses to the challenges of Covid-19 appear to have focused on spending more money to help New Zealand’s lagging economy. Alarmingly, this means public debt is expected to skyrocket from 19% of GDP in 2019 to nearly 54% by 2024. Read more

Media Release
19 June, 2020

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