New Zealand: 2019 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, September 20, 2019
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- New Zealand: 2019 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: September 20, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513514758.002
Summary findings: economic activity and investment
- Economic growth picked up in early 2019 after slowing in the second half of 2018.
- The pickup mostly reflected a rebound in private business investment growth.
- Residential investment also strengthened, notwithstanding cooling housing markets.
- Bank lending continued to slow across all sectors, growing now broadly in line with nominal gross domestic product.
Inflation and monetary policy
- The recent monetary policy easing fits the subdued inflation conditions and near-term risks to the outlook.
- Economic growth is only expected to remain close to potential on the back of a timely increase in macroeconomic policy support.
Banking system resilience and regulatory changes
- The proposed higher capital conservation buffers would provide for a welcome increase in banking system resilience.
- The new requirements would increase bank capital to levels that are commensurate with the systemic financial risks emanating from the banking system.
- The new framework should also differentiate more between large and small banks.
- A stronger bank supervision regime would still be needed, to complement the higher capital requirements.
Subject areas and keywords (as listed)
- Subject: Banking, Fiscal policy, Housing, Housing prices, Inflation, Infrastructure, National accounts, Prices
- Keywords: CR, debt statistic, economic growth, financial asset, Global, Housing, Housing prices, Inflation, Infrastructure, ISCR, liability positions vis-à-vis nonresident, monetary policy, R&D tax credit regime, regime, stats NZ, subdued inflation condition
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