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?
