These trends and constraints include demographic trends, the geopolitical situation, the level of governance and efficiency in the public sector, the scope of public expenditures, taxes and the debt, and of course, the global environment in which we work is very challenging. Expected demographic trends point to two very dominant factors.
Household indebtedness has increased significantly, so that over time households have raised their financial vulnerability to interest rate changes, unemployment, and swings in rental incomes and property capital values. On balance, the data suggest that the New Zealand household sector has continued to increase its financial concentration and overall debt exposure.