Source: The Treasury
The world has been experiencing a productivity slowdown, from which New Zealand has not been exempt. COVID-19 temporarily boosted labour productivity, but more recently, productivity has retreated. The overall trend since 2007 has been one of slow productivity growth.
The paper finds that a range of factors are likely to play a role in the productivity slowdown in New Zealand and across the world. These include lower productivity benefits from innovation, weak investment relative to employment growth, and a slowdown in international trade and connections.
Based on an analysis of current tr
