The GDP, the aggregate value of the goods and services produced, has been the go-to statistic for comparing nations’ economic prosperity. But is it the best measure? Increasingly, its value as a comprehensive gauge is being questioned, and the hunt is on for more holistic metrics that better account for such issues as standard of living.
A visit to New Zealand is a step back to a time before the pandemic, when large crowds still congregated at events. New Zealand has been amongst the most successful in beating back COVID-19 and is bearing financial fruits with its enviable, relatively positive economic performance. But a strong recovery is not guaranteed for the country—which, while an island, depends on the rest of the world for its prosperity.
The Reserve Bank of New Zealand (RBNZ) regulates banks operating in the country to ensure a safe and efficient domestic financial system, but a high percentage of bank assets that fall under its domain are foreign owned, leading to the challenge of compliance with the bank’s home regulations and New Zealand’s, as its host. However, foreign-owned banks can and do thrive in New Zealand’s soundly maintained financial sector.
The Reserve Bank of New Zealand (RBNZ), concerned about the country’s booming rental-investment market and the potential impact of bad loans on domestic lenders, is planning to establish a new asset subclass for residential-property-investment mortgage loans.
Property prices in Australia and New Zealand have been rising steadily for the past few months.