The 'Perfect' Little Economy of New Zealand | Economics Explained

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This is New Zealand – a picturesque nation with an economy that appears to exclusively rely on throwing tourists off cliffs in increasingly imaginative ways.

But Australia’s "little brother" is not to be underestimated. In fact, New Zealand is, arguably, the world’s best-managed economy. After considering the World Bank's Ease of Doing Business Index and various high-ranking Quality of Life and Happiness assessments, it's little wonder as to why consistently ranks New Zealand at the top (move aside, Norway!).

Perhaps even more remarkable is that this tiny island country has achieved remarkable prosperity in spite of not having notable natural resources (or acting as a tax haven for global businesses).

What are the primary drivers of New Zealand's economic prosperity?

How has the nation been able to accommodate these where other nations fail to do so?

And what are the challenges the nation might face to keep this success going?

... All this and more in today's episode of Economics Explained!

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[EconomicsExplained]

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[rylandmalcolm]

Economics Explained: A good economy, nice and stable
The comment section: I would hit you with my house if I had one

[kelvin]

Downsides of NZ: it's a hella expensive to live; from food, to clothes, to homes. And base wage is relatively low. You have to be aware that we currently have a housing crisis where first homes are starting to become an impossibility for younger generations and this has driven many families out of flats and having to resort to living in their cars.

[LauraTeAhoWhite]

New Zealand: Our GDP has grown
Also New Zealand: We can't afford a house

[samanthacuckow]

Nz is a nice place to live. The low wage economy and high cost of living is killing the middle class though. Unless you are rich or poor enough to qualify for government assistance you get reamed covering your week to week living expenses. Labour are doing nothing about it. Jacinda is good at talking but next to useless at doing.

[austen]

I work in construction in Australia and I work with A LOT of kiwis. They all say they’re in Australia because they can’t earn enough money to live working in New Zealand. I’ve met quite a few who still have family there and send money back. I’ve also met a lot of British and Irish people who have worked there and moved on to Australia because the wages are so poor and and the prices are so high. I haven’t looked at any graphs or anything but it really doesn’t seem like it’s that great for the average person.

[jackgibbons]

Im a kiwi, I remember my high school economics teacher saying the best financial decision we could make in our lives is to move to Australia.

[Flanders]

Housing is a massive crisis in NZ. Most young NZers never imagine owning their own homes.

[andrew.l.]

The best economy isn't just measured by what you've learned in this video. For the majority of Kiwis, the country is horrifically expensive and that's primarily why so many leave. The lifestyle/cost of living from earnings is far better in many other countries.

[taylorburne]

New Zealand has almost no innovation in business and is relying on housing prices rising indefinitely to sustain our GDP. Our green image is a façade, as we rely heavily on replanting pine trees and buying carbon credits to offset our emissions. We have two major cities were the majority of jobs are available, and with it taking 60+ years for an average household to pay their mortgage our 50+ aged peoples make up a large sector of the workforce and stagnate growth opportunities. To even be considered for an entry level position you need a masters degree. New Zealand is a horrible place for social mobility as owning a house has become unachievable for the average person, rent is unbelievably high and living conditions are poor. The commodification of housing in New Zealand has had incredibly damaging consequences on it's people. it's obviously not the worst place in the world, but the reputation we have been receiving worldwide is not deserved.

[sugarhill]

the cost of living here is atrocious, i used to live in the famously expensive japan but almost everything back here in NZ is more expensive, especially day to day things like food

[paulmitchell]

Yep, our economy is so good that 25% of our population moves overseas for a better life

[Ffffjjjje]

I've watched another documentary called "Who owns NZ?" and it points to bad arrangement from the country's economists/ lawmakers. It concluded that by granting citizenship in exchange to investment in NZ economy, most wealthy immigrants chose to invest in low risk investment like property which in turn created the ripple effect on house price surge. While most high risk investments such as innovative startups and small businesses being ignored by these overseas investors, instead of creating more jobs with investing in those, it kind of did the opposite with house prices and rent being too pricey for the normal employees to afford.

In my opinion, the NZ lawmakers or economists failed its people by inventing or must I say 'copy and paste' law from other immigrant hunting countries. I do not know if NZ authority is aware of this but it needs to be dealt with immediately. The 4 basic needs of living things (food, water, shelter, and clothes) are what NZ need to build a strong and steady foundation for its people to thrive. With shelter being a major issue in the center of NZ economy like Auckland, kiwis will continue to move to AUS and so does the immigrants in the long run. But the house price will never go down so NZ economists should work very hard to pick it up because families with children are literally living on the street in their car, imagine what that does to children psychology and development.

[Leo-vkqm]

Huge chunk of New Zealanders live abroad (I'm one of them), some war torn countries have less diaspora. It's a beautiful country but not very liveable due to cost of living.

[ChocolateMilkCultLeader]

EE letting everyone know how his is bigger while praising NZ. Classic brother behavior

[marti-nz]

NZ is good and all, but the housing market is slowing strangling the younger generations.

[Kevin_Pew]

You just offended every single Kiwi's by calling them "Australia'sLittleBrother"

[UsurpersAndAssassins]

As much as I enjoyed your video, I really feel like you glossed over the massive disparity between asset owners and workers, the rapidly increasing homelessness, and how hard it is for a regular working class person to find employment. As much as I love my country, we have very significant problems.

[definitelyclickbait]

The three dislikes are Norwegians,
In the words of EE
-"Move aside Norway"

[tiancheng]

It would be ideal to include child poverty, homeless rate and police efficiency.