## 1nzlea2025002-print-pdf

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### Young, High Growth Firms (Overview and findings)
- Focus: business dynamism in New Zealand relative to peers, with emphasis on young, high-growth firms (“gazelles”) using Orbis firm-level balance sheet data for firms established 2008–2018.
- Definition used: gazelles are firms that see 20 percent growth in sales (adjusted for inflation) over at least one three-year period when they are under ten years old, from a base of at least USD100,000 in 2015 real terms.
- Sample:
  - 163 gazelles out of a total of 1,450 firms established in New Zealand between 2008 and 2018.
  - Over 200,000 gazelles from nearly 1.3 million firms established in other AEs.
  - Sample also includes 530 large old non-gazelles in New Zealand and around 400,000 in other AEs.

- Business dynamism and gazelle birth rates:
  - New Zealand enterprise birth rate: 12 percent in 2019 (aggregate measure including many firms with no employees).
  - Firms with at least one employee: enterprise birth rates closer to 6 percent.
  - Gazelle birth rates: around 13 percent (share of all new firms established), below median in peer AEs; below Australia, Finland, Sweden; above Netherlands, Denmark.
  - Over 80 percent of enterprise births in New Zealand are firms with no employees; employment share of micro firms (ten or fewer employees) is high relative to the US.

- Sector concentration of gazelles:
  - Over 2008–2018, new gazelles in New Zealand were primarily concentrated in the financial and real estate sector.
  - The share of new gazelles in financial and real estate was higher in New Zealand than in most peers, despite that sector’s lower overall productivity growth.
  - ICT and professional & technical services had a lower share of new gazelles in New Zealand than in peers.
  - Implication: investment and innovation incentives may be misaligned across sectors; high propensity to save in real estate could be a factor.

- Productivity potential of gazelles:
  - Average revenue product of capital (ARPK): for gazelles in New Zealand was on average two times higher than that of larger, older firms (2008–2021), and did not show signs of decline.
  - In other AEs, ARPK of gazelles was on average 1.6 times higher than that of larger, older firms, with the latter seeing flat ARPK over the period.
  - Implication: gazelles have potential to boost aggregate productivity given their higher ARPK relative to incumbent firms.

- Financing patterns and constraints:
  - Leverage (total debt to total assets):
    - New Zealand’s youngest gazelles were around 15 percentage points more leveraged than older, larger firms in the years immediately after establishment.
    - In other AEs, the difference was around 6 percentage points.
    - In New Zealand, leverage differences decline gradually and disappear as more years pass since establishment; in other AEs, gazelles remain, on average, more leveraged than peers over time.
  - Net effective interest rates on debt:
    - In the first three years after formation, New Zealand’s gazelles paid around one percentage point lower net effective interest rates than larger, older firms.
    - As New Zealand gazelles age, net effective interest rates converge and become higher than for larger, older firms after ten years post-establishment.
    - In other AEs, gazelles face higher net effective interest rates than larger, older peers throughout the first 15 years post-establishment.
  - Intangible assets and financing costs:
    - Gazelles in New Zealand with high intangible asset shares face higher financing costs: 0.75 percentage points higher net effective interest rates for gazelles in the top tercile of intangible assets compared with larger, older firms with similar shares.
    - Gazelles with fewer intangible assets benefit from lower financing costs relative to larger, older firms with similarly low intangible shares.

- Key implications:
  - Two-stage financial dynamic in New Zealand: favorable access and terms for the earliest years after firm formation, followed by rising constraints as firms grow.
  - Constraints on scaling (leverage and rising interest costs, especially for intangible-intensive firms) may limit the ability of promising young firms to expand and contribute to productivity gains.
  - Sectoral concentration of gazelles in lower-productivity sectors and under-representation in ICT and professional & technical services point to misaligned incentives for investment and innovation.

### Availability of financing is critical to enhance business dynamism and ultimately productivity growth
- Role of financing:
  - Young, fast-growing firms often require ample financing but may face constraints, especially beyond the first years after establishment.
  - Strong reliance on bank credit and limited availability of broader financing options likely restrict private sector development and slow productivity growth in New Zealand.
  - Section compares equity and debt markets, private financing, and overseas investment in New Zealand relative to other AEs.

- Equity markets (key facts):
  - New Zealand’s stock market capitalization remains lower than for peers, with limited growth.
  - Trading volume and turnover ratios are significantly lower than peers.
  - Market concentration: the 50 largest stocks account for approximately 90 percent of total market capitalization and the top 10 stocks represent more than half.
  - Largest listed companies concentrated in utilities, healthcare, and services rather than technology.
  - Slowdown in IPOs and a ‘two-tier’ market with retail investors concentrated in larger, more liquid stocks.
  - Result: equity market plays a relatively limited role in supporting private sector development, especially for younger, smaller firms or high-growth industries.

- Debt markets (key facts):
  - Capitalization on the NZX debt exchange tripled in nominal terms over the last decade, to almost NZ$60 billion.
  - Corporate bond markets are under 15 percent of GDP, small relative to other advanced economies and also smaller than in regional EMs such as Thailand and Malaysia.
  - Retail debt remains predominant; less liquid wholesale securities have grown very slowly.

- Private capital and venture investment:
  - Venture capital activity picked up sharply in 2021 and remained strong, reaching a 10-year high in 2023 with over NZD380 million invested.
  - Venture capital has been heavily focused on IT/software and technology sectors.
  - Venture capital investment remains low relative to peer AEs.
  - Private equity and mid-market:
    - Top-end private equity investments declined in number and size in 2023.
    - Mid-market investment boomed in 2020-2021 but dropped off in 2022 and has not fully recovered.
    - Mid-market investments continue to be funded primarily from Australian and New Zealand-domiciled funds; investments from the rest of the world remain limited.

- Pension savings and capital market depth:
  - Pool of private pension savings is limited relative to most AE peers, reflecting universality of the Superannuation scheme and propensity to save in real estate.
  - KiwiSaver has helped create a pool of domestic savings and fueled some capital market growth.
  - Assets earmarked for retirement were just under 50 percent of GDP in 2022 and remain well below levels in most peers.
  - Pension asset allocation:
    - Pensions assets in New Zealand remain more heavily concentrated in equities and other liquid assets (cash and deposits) than in peers.
    - Rules allowing easy transfers between KiwiSaver managers and requirements around daily unit pricing may disincentivize investment in less liquid assets (bonds, private assets).
  - Policy note: potential policies include incentivizing greater savings in KiwiSaver (including making them compulsory, increasing the contribution rate currently set at a 3 percent default minimum for both employer and employee, or both).

- Foreign direct investment (FDI):
  - New Zealand’s foreign investment screening regime has been historically one of the most restrictive among AEs (OECD FDI Regulatory Restrictiveness Index).
  - Inward FDI has been lower than in many peer economies as a percent of GDP.
  - Past overseas investment regime implied significant administrative burdens and lengthy approval processes, although rejection rates were low.
  - Streamlining approvals and moving to a risk-based screening regime in most investment categories could increase availability of financing and exposure to global ideas and practices.

- Constraints to expansion, innovation, and competition:
  - Innovation and R&D:
    - Product innovation rate for firms with over 100 employees fell from 33% in 2007 to 27% in 2021; for firms with 50–99 employees, from 27% to 22% over the same period.
    - Total R&D investment lags peers, driven primarily by low business R&D (BERD).
    - R&D tax incentives introduced in New Zealand in 2019; spending remains below levels in peers.
    - R&D implied tax subsidy is not higher for SMEs in New Zealand; administrative costs of applying for incentives can be large for SMEs.
    - Government spending on BERD increased slightly prior to the pandemic then declined; focus shifted toward incentivizing firm R&D.
    - Public research generally yields more than one additional dollar in total R&D per dollar of fiscal cost.
    - Weak innovation aligns with low MFP growth, lower share of gazelles in ICT and professional and technical services, and financing constraints for gazelles with high intangible assets.
  - Technology diffusion:
    - Productivity of firms at the New Zealand frontier was found to be less than 50% of the small-advanced economies frontier (data up to 2016).
    - Under 10 percent: very small share of firms holding internationally-recognized quality certifications in New Zealand.
  - Competition and business dynamism:
    - Share of firms reporting they are constrained by competition from rivals when setting prices is lower than in other advanced economies (data as of 2023).
    - New Zealand predisposed to higher market concentration due to small size and geographic remoteness.
    - Historically softer competition policy (e.g., voluntary merger notification regime); New Zealand remains one of only three AEs with a voluntary merger notification regime.
    - Pro-competitiveness of product market regulation compares unfavorably with peers, reflecting higher administrative and regulatory burdens, barriers to trade and investment, and weaker regulation impact evaluation.

- Access to land and infrastructure:
  - Complex planning and lengthy consent processes make access to land a significant constraint; firms report land access as a major constraint at a significantly higher rate than peer AEs.
  - Infrastructure gaps and maintenance needs impede productivity; nearly half (47.3 percent) of firms in New Zealand report experiencing internet disruptions, a higher share than in peer AEs.
  - Digital infrastructure quality affects firms’ ability to reap productivity gains from advanced digital technology.

- Policy implications and recommended reforms (high-level):
  - Deepening capital markets:
    - Incentivize accumulation of private savings outside real estate and a more permissive capital investment framework for pension savings.
    - Potential policies: incentivize greater savings in KiwiSaver (including making them compulsory, increasing the contribution rate currently set at a 3 percent default minimum for both employer and employee, or both).
    - Remove tax advantage associated with housing investment to encourage pension and other savings.
    - Pension reforms to shift asset allocation toward illiquid assets could foster development of illiquid asset markets and improve access to finance for a broader range of firms.
    - Align KiwiSaver liquidity management settings with international practices (e.g., EIOPA rules requiring adequate liquidity buffers and risk assessments) to encourage investment in bonds and private capital.
    - Review and reduce administrative burdens to issuing equity or debt while retaining asset integrity; ongoing Capital Markets Reforms and planned RBNZ analysis on capital market depth are welcome.
  - Boosting innovation:
    - Public research, R&D tax incentives, and research grants are cost-effective tools to boost innovation.
    - Assess efficiency of R&D tax credits and ensure access across a broad range of firms; calibrate incentives to encourage SME innovation and consider larger incentives or reduced administrative burdens for smaller firms.
    - Maintain government investment in science and technology, focusing on research platforms where New Zealand firms have proven track records and global visibility.
    - Encourage increased international connections and openness to foreign investment to strengthen technological diffusion and domestic innovation links.
  - Enhancing business dynamism and competition:
    - Continue upgrading the Commerce Act and competition policies in line with international best practices; provide the Commerce Commission with adequate tools to tackle changing markets in a digital age.
    - Review regulatory and governance arrangements with a competition lens.
  - Reducing land and infrastructure barriers:
    - Replace or reform the RMA to streamline planning processes and reduce impediments to land use; consider tax policy adjustments to incentivize efficient land use.
    - Move to a risk-based screening regime for overseas investment to reduce administrative burdens for foreign investors.
    - Bridge infrastructure gaps, maintain existing capital stock, fast-track approvals for critical projects, attract private sector investment for infrastructure, and develop a long-term stable pipeline.
  - Other measures:
    - Public investments in education and physical and digital infrastructure, upgrade digital infrastructure and skills (including for AI).
    - Focus on quality and adaptability of the education system.
    - Design targeted, potentially revenue-neutral fiscal incentives to foster uptake of new technologies.

### An ambitious structural reform agenda is already underway in New Zealand to tackle the productivity challenge
- Main findings:
  - An ambitious structural reform agenda is already underway in New Zealand to tackle the productivity challenge.
  - Policies should continue to be designed based on thorough cost-benefit analyses.
  - Broad buy-in around the most critical reform areas, and careful coordination between agencies, could help smooth implementation and ensure reforms deliver expected benefits.

- Policy implications and recommendations:
  - Design reforms grounded in thorough cost-benefit analyses to prioritize interventions and assess trade-offs.
  - Build broad stakeholder buy-in around the most critical reform areas to increase legitimacy and uptake.
  - Ensure careful coordination between agencies to smooth implementation and improve the likelihood that reforms deliver expected benefits.

*Source: 1nzlea2025002-print-pdf*

### 1. Young, High Growth Firms _________________________________________________________ 10

### 1. Young, High Growth Firms

### Overview
- Focus: business dynamism in New Zealand relative to peers, with emphasis on young, high-growth firms (“gazelles”) using Orbis firm-level balance sheet data for firms established 2008–2018.
- Definition used: gazelles are firms that see 20 percent growth in sales (adjusted for inflation) over at least one three-year period when they are under ten years old, from a base of at least USD100,000 in 2015 real terms.
- Sample note: the dataset contains 163 gazelles out of a total of 1,450 firms established in New Zealand between 2008 and 2018, and over 200,000 gazelles from nearly 1.3 million firms established in other AEs; sample also includes 530 large old non-gazelles in New Zealand and around 400,000 in other AEs.

### Business dynamism and gazelle birth rates
- New Zealand enterprise birth rate: 12 percent in 2019 (aggregate measure including many firms with no employees).
- Firms with at least one employee: enterprise birth rates closer to 6 percent.
- Gazelle birth rates: around 13 percent (share of all new firms established), below median in peer AEs; below Australia, Finland, Sweden; above Netherlands, Denmark.
- Interpretation: high overall entry partly driven by high entry of firms with no employees (over 80 percent of enterprise births in New Zealand); employment share of micro firms (ten or fewer employees) is high relative to the US, suggesting barriers to growth for small firms.

### Sector concentration of gazelles
- Over 2008–2018, new gazelles in New Zealand were primarily concentrated in the financial and real estate sector.
- The share of new gazelles in financial and real estate was higher in New Zealand than in most peers, despite that sector’s lower overall productivity growth.
- ICT and professional & technical services (hi‑tech, high-productivity sectors) had a lower share of new gazelles in New Zealand than in peers.
- Implication: investment and innovation incentives may be misaligned across sectors; high propensity to save in real estate could be a factor.

### Productivity potential of gazelles
- Average revenue product of capital (ARPK): for gazelles in New Zealand was on average two times higher than that of larger, older firms (2008–2021), and did not show signs of decline.
- In other AEs, ARPK of gazelles was on average 1.6 times higher than that of larger, older firms, with the latter seeing flat ARPK over the period.
- Implication: gazelles have potential to boost aggregate productivity given their higher ARPK relative to incumbent firms.

### Financing patterns and constraints
- Leverage (total debt to total assets):
  - New Zealand’s youngest gazelles were around 15 percentage points more leveraged than older, larger firms in the years immediately after establishment.
  - In other AEs, the difference was around 6 percentage points.
  - In New Zealand, leverage differences decline gradually and disappear as more years pass since establishment; in other AEs, gazelles remain, on average, more leveraged than peers over time.
- Net effective interest rates on debt:
  - In the first three years after formation, New Zealand’s gazelles paid around one percentage point lower net effective interest rates than larger, older firms.
  - As New Zealand gazelles age, net effective interest rates converge and become higher than for larger, older firms after ten years post-establishment.
  - In other AEs, gazelles face higher net effective interest rates than larger, older peers throughout the first 15 years post-establishment.
- Intangible assets and financing costs:
  - Gazelles in New Zealand with high intangible asset shares face higher financing costs: 0.75 percentage points higher net effective interest rates for gazelles in the top tercile of intangible assets compared with larger, older firms with similar shares.
  - Gazelles with fewer intangible assets benefit from lower financing costs relative to larger, older firms with similarly low intangible shares.
- Interpretation:
  - New Zealand’s gazelles appear to access ample and relatively affordable financing at very early stages (possibly supported by use of real estate as collateral), but face strengthening financial constraints as they scale.
  - Financing constraints are disproportionately severe for gazelles relying on intangible assets, potentially limiting emergence in hi-tech, high-productivity sectors.

### Key implications
- Financial dynamics suggest a two-stage pattern in New Zealand: favorable access and terms for the earliest years after firm formation, followed by rising constraints as firms grow.
- Constraints on scaling (leverage and rising interest costs, especially for intangible-intensive firms) may limit the ability of promising young firms to expand, compete with incumbents, and contribute to broader productivity gains.
- Sectoral concentration of gazelles in lower-productivity sectors (financial and real estate) and under-representation in ICT and professional & technical services point to misaligned incentives for investment and innovation.

*Source: 1nzlea2025002-print-pdf*

### 17.      Availability of financing is critical to enhance business dynamism and ultimately

### 17.      Availability of financing is critical to enhance business dynamism and ultimately productivity growth

### Role of financing in business dynamism
- Young, fast-growing firms often require ample financing but may face constraints, especially beyond the first years after establishment.
- Strong reliance on bank credit and limited availability of broader financing options likely restrict private sector development and slow productivity growth in New Zealand.
- This section compares equity and debt markets, private financing, and overseas investment in New Zealand relative to other AEs.

### Equity and debt markets
- Equity markets:
  - New Zealand’s stock market capitalization remains lower than for peers, with limited growth.
  - Trading volume and turnover ratios are significantly lower than peers.
  - Market concentration is high: the 50 largest stocks account for approximately 90 percent of total market capitalization and the top 10 stocks represent more than half.
  - Largest listed companies are concentrated in utilities, healthcare, and services rather than technology.
  - New Zealand has experienced a slowdown in IPOs; surveys indicate a ‘two-tier’ market with retail investors concentrated in larger, more liquid stocks.
  - As a result, the equity market plays a relatively limited role in supporting private sector development, especially for younger, smaller firms or high-growth industries.
- Debt markets:
  - Capitalization on the NZX debt exchange tripled in nominal terms over the last decade, to almost NZ$60 billion.
  - Corporate bond markets are under 15 percent of GDP, small relative to other advanced economies and also smaller than in regional EMs such as Thailand and Malaysia.
  - Retail debt remains predominant; less liquid wholesale securities have grown very slowly, limiting options for sizeable, lower-cost corporate investment.

### Private capital and venture investment
- Venture capital:
  - Activity picked up sharply in 2021 and remained strong, reaching a 10-year high in 2023 with over NZD380 million invested.
  - Venture capital has been heavily focused on IT/software and technology sectors.
  - Venture capital investment remains low relative to peer AEs.
- Private equity and mid-market:
  - Top-end private equity investments declined in number and size in 2023.
  - Mid-market investment boomed in 2020-2021 but dropped off in 2022 and has not fully recovered.
  - Mid-market investments continue to be funded primarily from Australian and New Zealand-domiciled funds; investments from the rest of the world remain limited.

### Pension savings and capital market depth
- Pool of private pension savings is limited relative to most AE peers, reflecting universality of the Superannuation scheme and propensity to save in real estate.
- KiwiSaver has helped create a pool of domestic savings and fueled some capital market growth.
- Assets earmarked for retirement were just under 50 percent of GDP in 2022 and remain well below levels in most peers.
- Pension asset allocation:
  - Pensions assets in New Zealand remain more heavily concentrated in equities and other liquid assets (cash and deposits) than in peers.
  - Rules allowing easy transfers between KiwiSaver managers and requirements around daily unit pricing may disincentivize investment in less liquid assets (bonds, private assets).

### Foreign direct investment (FDI)
- New Zealand’s foreign investment screening regime has been historically one of the most restrictive among AEs (OECD FDI Regulatory Restrictiveness Index).
- Inward FDI has been lower than in many peer economies as a percent of GDP.
- Past overseas investment regime implied significant administrative burdens and lengthy approval processes, although rejection rates were low.
- Streamlining approvals and moving to a risk-based screening regime in most investment categories could increase availability of financing and exposure to global ideas and practices.

### Constraints to expansion, innovation, and competition
- Innovation and R&D:
  - Productivity Commission: product innovation rate for firms with over 100 employees fell from 33% in 2007 to 27% in 2021; for firms with 50–99 employees, from 27% to 22% over the same period.
  - Total R&D investment lags peers, driven primarily by low business R&D (BERD).
  - R&D tax incentives introduced in New Zealand in 2019; spending remains below levels in peers.
  - R&D implied tax subsidy is not higher for SMEs in New Zealand; administrative costs of applying for incentives can be large for SMEs.
  - Government spending on BERD increased slightly prior to the pandemic then declined; focus shifted toward incentivizing firm R&D.
  - Public research generally yields more than one additional dollar in total R&D per dollar of fiscal cost.
  - Weak innovation aligns with low MFP growth, lower share of gazelles in ICT and professional and technical services, and financing constraints for gazelles with high intangible assets.
- Technology diffusion:
  - Productivity of firms at the New Zealand frontier was found to be less than 50% of the small-advanced economies frontier (data up to 2016).
  - Few international connections or limited openness to foreign investment may slow knowledge diffusion.
  - Under 10 percent: very small share of firms holding internationally-recognized quality certifications in New Zealand.
- Competition and business dynamism:
  - Share of firms reporting they are constrained by competition from rivals when setting prices is lower than in other advanced economies (data as of 2023).
  - New Zealand’s economy is predisposed to higher market concentration due to small size and geographic remoteness.
  - Historically softer competition policy (e.g., voluntary merger notification regime) may have reduced competition; New Zealand remains one of only three AEs with a voluntary merger notification regime.
  - Pro-competitiveness of product market regulation compares unfavorably with peers, reflecting higher administrative and regulatory burdens, barriers to trade and investment, and weaker regulation impact evaluation.

### Access to land and infrastructure
- Complex planning and lengthy consent processes make access to land a significant constraint; firms report land access as a major constraint at a significantly higher rate than peer AEs.
- Infrastructure gaps and maintenance needs impede productivity; nearly half (47.3 percent) of firms in New Zealand report experiencing internet disruptions, a higher share than in peer AEs.
- Digital infrastructure quality affects firms’ ability to reap productivity gains from advanced digital technology.

### Policy implications and recommended reforms
- Deepening capital markets:
  - Incentivize accumulation of private savings outside real estate and a more permissive capital investment framework for pension savings.
  - Potential policies: incentivize greater savings in KiwiSaver (including making them compulsory, increasing the contribution rate currently set at a 3 percent default minimum for both employer and employee, or both).
  - Remove tax advantage associated with housing investment to encourage pension and other savings.
  - Pension reforms to shift asset allocation toward illiquid assets could foster development of illiquid asset markets and improve access to finance for a broader range of firms.
  - Align KiwiSaver liquidity management settings with international practices (e.g., EIOPA rules requiring adequate liquidity buffers and risk assessments) to encourage investment in bonds and private capital.
  - Review and reduce administrative burdens to issuing equity or debt while retaining asset integrity; ongoing Capital Markets Reforms and planned RBNZ analysis on capital market depth are welcome.
- Boosting innovation:
  - Public research, R&D tax incentives, and research grants are cost-effective tools to boost innovation.
  - Assess efficiency of R&D tax credits and ensure access across a broad range of firms; calibrate incentives to encourage SME innovation and consider larger incentives or reduced administrative burdens for smaller firms.
  - Maintain government investment in science and technology, focusing on research platforms where New Zealand firms have proven track records and global visibility.
  - Encourage increased international connections and openness to foreign investment to strengthen technological diffusion and domestic innovation links.
- Enhancing business dynamism and competition:
  - Continue upgrading the Commerce Act and competition policies in line with international best practices; provide the Commerce Commission with adequate tools to tackle changing markets in a digital age.
  - Review regulatory and governance arrangements with a competition lens.
- Reducing land and infrastructure barriers:
  - Replace or reform the RMA to streamline planning processes and reduce impediments to land use; consider tax policy adjustments to incentivize efficient land use.
  - Move to a risk-based screening regime for overseas investment to reduce administrative burdens for foreign investors.
  - Bridge infrastructure gaps, maintain existing capital stock, fast-track approvals for critical projects, attract private sector investment for infrastructure, and develop a long-term stable pipeline.
- Other measures to support innovation and diffusion:
  - Public investments in education and physical and digital infrastructure, upgrade digital infrastructure and skills (including for AI).
  - Focus on quality and adaptability of the education system.
  - Design targeted, potentially revenue-neutral fiscal incentives to foster uptake of new technologies.

*Source: New Zealand 2025 Article IV Staff Report chapter on financing, capital markets, innovation, competition, and policy implications.*

### 31.      An ambitious structural reform agenda is already underway in New Zealand to tackle

### An ambitious structural reform agenda is already underway in New Zealand to tackle the productivity challenge

### Main findings
- An ambitious structural reform agenda is already underway in New Zealand to tackle the productivity challenge.
- Policies should continue to be designed based on thorough cost-benefit analyses.
- Broad buy-in around the most critical reform areas, and careful coordination between agencies, could help smooth implementation and ensure reforms deliver expected benefits.
- 16 See (Conway, 2016) for a discussion of policy options to improve international connections.

### Policy implications and recommendations
- Design reforms grounded in thorough cost-benefit analyses to prioritize interventions and assess trade-offs.
- Build broad stakeholder buy-in around the most critical reform areas to increase legitimacy and uptake.
- Ensure careful coordination between agencies to smooth implementation and improve the likelihood that reforms deliver expected benefits.

*Source: 1nzlea2025002-print-pdf - 31. An ambitious structural reform agenda is already underway in New Zealand to tackle*

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_Source: https://www.imf.org/-/media/files/publications/cr/2025/english/1nzlea2025002-print-pdf.pdf_