Our capital stock and productivity will struggle to develop, dragging down potential GDP growth. New Zealand’s productivity growth has already been slow for some time.6 Breaking out of this will require greater investment in technology, education, and infrastructure. The Reserve Bank cannot directly make the investments the economy requires—this will have to come from the private sector and government.
The second is the Credit Reporting Bill that would mitigate a good deal of the credit risks associated with lack of information on borrowers and that is an important factor in credit defaults and non-performing loans.