For these reasons they are less relevant considerations for monetary policy and central banks tend to talk about them much less. To acknowledge their role in the overall growth story, let me briefly offer a couple of examples of these determinants: geography and institutions.
Economic geography can have a significant effect on long term prospects.2 Proximity and connectedness to regional or global markets exposes domestic businesses to greater competition, aids in the transfer of technology and knowledge, and generates greater efficiencies of scale and scope. New Zealand’s small population and distance from major markets can make it difficult to capture these benefits.