In this paper we discuss some of these statistical issues and provide some rough estimates of their possible impact on GDP per capita – which is the most widely quoted, if not always the most useful, indicator of an economy’s performance. Our list is not exhaustive, but surprisingly all of the treatments covered result in an underestimation of New Zealand’s GDP.
There have also been changes in inflation expectations and wage growth, as seen in the fact that base pay, which virtually stopped rising during the deflationary period, has started to increase again since 2014.