NZ Economy Shows Signs of Recovery Amid Structural Challenges

New Zealand's economy has shown signs of recovery in recent times, with inflation returning to the Reserve Bank's target range and interest rates easing.

However, beneath these improving headlines lies a more complex picture. The country continues to struggle with low productivity, under-investment in businesses, and shallow capital markets.

The OECD argues that lifting productivity, improving access to growth capital, and encouraging greater business investment will ultimately determine whether this recovery becomes sustainable.