A group of business leaders is advocating for 5% annual economic growth, but an economist remains sceptical.
Growth NZ comprises Brendan Vercoe, Bowen Pan, Anna Kominik, Alyssa Laakmann, David Booth, Sam Blackman, Maya Pan, Henry Wang, and Malinidi Maclean.
The group highlighted five priority areas to grow the economy and improve outcomes for New Zealanders: education, investment, talent, innovation, and revenue.
It stated that New Zealand must become the world’s most AI-literate and future-ready small nation through education and industry training.
Innovation should be supported through policy reforms. Banking should see greater competition, while the energy sector requires diversification.
Growth NZ also sought tax reforms to strengthen businesses, especially small exporters.
It also called for a “relentless focus” on engaging the million New Zealanders living overseas to contribute to the country’s growth.
“Low wages, public services are strained. For me the worst thing is that the kids are heading overseas for their opportunities and better wages. These problems are long-term and structural, and the solution needs to be long-term and structural as well,” Vercoe said.
“We believe that if we get the economic growth, a lot of the other problems in terms of the strained public service and wages, they’re improved automatically when you have strong economic growth.”
“It needs to be sustainable.”
“We’re keen to set the ambition for making people realise that economic growth is a good thing for everyone. If we have an ambition, I think New Zealand can come together and work towards that. We’re really optimistic.”
“Over the next 20 years, there is potential for us to be quite capital-rich with KiwiSaver. A big part of our problem with productivity is looking backwards. If we’re disciplined, if we’re focused, if we have policy coherence moving forward, the opportunity is there waiting for us.”
Vercoe said the group was open to working with whichever party forms the government.
While Simplicity chief economist Shamubeel Eaqub welcomed the target, he stressed that the methods for achieving it would be key.
“What investment are we willing to make for that future growth? It’s not a question of target; it’s a question of what we’re willing to invest in to lead to that long-term growth,” Eaqub said.
“You can’t have one without the other. What is behind it to make it happen? “