NZ Treasury Update Highlights Economic Gains, But Productivity Concerns Remain Unaddressed

Treasury's Pre-Election Economic and Fiscal Update has provided political parties in New Zealand with their clearest picture yet of the economy they could inherit after November's election.

The update forecasts a $6.8 billion deficit in 2026-27, down from the $11.4b predicted at the beginning of the year.

According to Associate Professor Dennis Wesselbaum, sustained productivity gains require investment, skills, and innovation. However, election pledges have mostly avoided addressing this issue, which he considers New Zealand's economic elephant in the room.