Potential Growth of Australia and New Zealand in the Aftermath of the Global Crisis

Author/Editor:

Yan Sun

Publication Date:

May 1, 2010

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Using a production function method, this paper assesses the impact of the global crisis on the potential growth of Australia and New Zealand. The two countries have not been hit hard by the global crisis, but have large net external liabilities. The paper finds that the main negative impact of the global crisis is likely to come through higher costs of capital, offset partly by a higher return to capital from strong demand for commodities by emerging Asia. It estimates medium-term potential growth of about 3 percent for Australia and 2. percent for New Zealand, higher than that of many other advanced economies.

Series:

Working Paper No. 10/127

Subject:

English

Publication Date:

May 1, 2010

ISBN/ISSN:

9781455200863/1018-5941

Stock No:

WPIEA2010127

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

22

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