Improving Economic Resilience

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How well prepared is Aotearoa-New Zealand to adapt to major and persistent supply chain disruptions? What needs to change, to improve productivity and make our economy more resilient to supply chain shocks wherever they come from? 

The Government has asked the Productivity Commission to undertake an inquiry into the resilience of the New Zealand economy to supply chain disruptions. 

The Government wants to identify what policies and interventions can enhance the resilience of New Zealand’s economy and living standards to persistent disruptions.  

Media release announcing inquiry.

Improving Economic Resilience

Timeline

  • Terms of Reference
    October 2022
  • Issues paper
    February 2023
  • Submissions welcome on issues paper
  • Draft report
    August 2023
  • Submissions welcome on draft report
  • Final report
    February 2024

The inquiry

New Zealanders’ wellbeing and our economy depend on goods and services delivered through global supply chains.  

Trade and logistics networks enable productivity-enhancing specialisation, production, and distribution across the globe. They also connect us to new technologies and ideas. However, the environment that global supply chains relied on for the past three decades is challenged by emerging geopolitical, environmental, societal, economic, infrastructural and health risks. 

New Zealand is a small, open, trade-based economy, far from global markets. New Zealand is exposed and highly susceptible to disruption while also having limited power to influence events or manage global supply chains. 

The Commission will apply its independent analytical capacity and work with stakeholders to define resilience, identify significant or systemic vulnerabilities, and examine current arrangements. From this, the Commission will explore which policies and what choices might assist in anticipating, preparing for, responding to, recovering, and learning from supply chain disruptions. 


What's next?

To enhance the resilience of our economy to external shocks, the Commission will investigate: 

  • factors that make the New Zealand economy vulnerable to supply chain disruptions within the context of increasing risks and the pandemic experience; 
  • vulnerabilities from importer and exporter dependencies on global supply chains; 
     
  • a Te Ao Māori perspective on resilience considering He Ara Waiora dimensions and how it applies within Māori businesses and communities; 

  • drivers of variation in firm, sector, and community, resilience to supply chain disruptions. 

The Commission will publish an issues paper, presenting our initial thinking on/framing of the inquiry for public comment, followed by a final report or reports, which must be submitted to each of the referring Ministers by 15 February 2024. 


Key documents

Research