Assets and Infrastructure

The two indicators of economic resilience regular monitored by Statistics New Zealand are- (i) Assets and Infrastructure- (ii) Labour and Productivity

Definition and measure
  • Net (wealth) capital stock refers to the current market valuation of an industry’s or an economy’s productive stock (OECD).
  • This includes fixed assets, such as machinery, equipment, buildings, and infrastructure that can be used in production for more than one year.
  • The real net stock of total assets represents accumulated investment, less retirements and accumulated depreciation for assets still operating (that is, gross capital stock less accumulated depreciation on assets still in operation). Ensuring that a broad base of assets is maintained can increase opportunities for future economic development.
  • This indicator is expressed in 1995/96 dollars, to remove the effect of price changes. (NZ Statistics)

2016 update from Stats NZ

Real net capital stock per person rose 33 percent from 1991 to 2015

  • The volume of real net capital stock rose 74.3 percent from 1991 to 2015.
  • The increase per person, which takes into account the population increase over the same period, was 33 percent.
  • Long-term changes in the stock of produced capital are an indication of the wealth of New Zealand. 

Stats NZ 2014

Real net capital stock per person rose 31 percent from 1991 to 2013

Long-term changes in the stock of produced capital are an indication of the wealth of New Zealand

  • The volume of real net capital stock rose 67.6 percent from 1991 to 2013.
  • The increase per person, which takes into account the population increase over the same period, was 31 percent.

Labour and Productivity

Definition and measure
  • Labour productivity is a measure of the efficiency of the labour force, that is, output per hour paid. Growth in labour productivity implies an increase in the efficiency and competitiveness of the economy.
  • The labour productivity measure covered approximately 58 percent of the entire economy in 2011. The industries covered are defined as the ‘former measured sector’ and consist of industries for which estimates of inputs and outputs are independently derived in constant prices.
  • Labour productivity is the ratio of output (as measured by real GDP) to labour input (measured as hours paid) for the \’former measured sector\’.
  • Excluded are those industries for which real value-added in the New Zealand System of National Accounts is largely measured using input methods, such as the number of employees. This is mainly government non-market industries that provide services – such as administration and defence – free or at nominal charges.
Stats NZ 2017
Since 1987, labour productivity has increased an average of 2.2 percent a year
  • Between 1987 and 2013, average annual growth in labour productivity was 2.2 percent. This was primarily the result of output (as measured by real gross domestic product (GDP)) growing 2.1 percent a year.
  • In 2013, labour productivity increased 2.0 percent, output increased 2.4 percent, and labour input (measured as hours paid) increased 0.3 percent.
  • Labour productivity relates to the measured sector of the economy, divided into three broad groups: primary, goods-producing, and services.

Energy Intensity

Definition and measure

The energy intensity indicator measures the relationship between the environment and economy by comparing two indicators. It determines whether our reliance on energy to generate economic growth is increasing or decreasing.

Energy intensity compares production in the economy, as measured by real GDP, with total energy demand, as measured by total consumer energy. Energy intensity decreases when total consumer energy grows slower than real GDP. Lower energy intensity means we are less reliant on energy.

Total consumer energy is the amount of energy consumed by final users, excluding energy used or lost in the process of transforming energy into other forms and bringing energy to final consumers. Real GDP is volume series, expressed in 1995/96 dollars, to remove the effect of price changes.

The energy intensity of the economy has decreased 25 percent since 1990

  • Between 1990 and 2014, real gross domestic product (GDP) has increased at a greater rate than total consumer energy. As a result, the energy intensity of the economy fell 25 percent, with less energy required for each unit of value added to the economy.
  • A structural factor contributing to the long-term reduction in energy intensity in New Zealand is the growth of service industries, which are less energy-intensive than industries such as manufacturing.
Information from Stats NZ (2014)
The energy intensity of the economy has decreased 27 percent since 1990
  • Between 1990 and 2012, real gross domestic product (GDP) has increased at a greater rate than total consumer energy. As a result, the energy intensity of the economy fell 27 percent, with less energy required for each unit of value added to the economy.
  • Both total consumer energy and real GDP rose in 2011. However, in 2012 only GDP continued to rise.
  • A structural factor contributing to the long-term reduction in energy intensity in New Zealand is the growth of service industries, which are less energy-intensive than industries such as manufacturing.