Living on borrowed time in land of long dark cloud
Our poor cousins. Literally. New Zealand's booming economy may be outperforming Australia's, but New Zealanders are leading the world in "dissaving"; that's spending more than they earn. This year, New Zealand household savings will decline more sharply than in any other advanced economy, according to Organisation for Economic Co-operation and Development projections. Only New Zealand families have been consistently living beyond their means for more than a decade.
Tuesday, June 7th 2005, 8:47AM
by The Landlord
The new trans-Tasman bottom line, according to a major study by the Auckland think tank the New Zealand Institute, is that middle New Zealand - that imaginary statistical household in the exact middle of the assets range - is now worth a mere $NZ68,000 ($63,000). The comparable Australian household is worth $218,000.Part of the problem, says the institute's executive director, Dr David Skilling, is that many Kiwis, like Australians, feel rich.
Unemployment is below 4 per cent, the economy has been growing for six years, credit is accessible and real estate values have soared. So why is prosperity misleading?
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