NZ climbs wealth ladder on the back of foreigners

New Zealand has moved up one place on the OECD ladder in terms of gross domestic product per person, economic development indicators show.

But all the benefit of the income gain has accrued to foreigners.

The figures show GDP per capita has lifted New Zealand ahead of Spain to 20th place in the 30-member club of industrialised nations since the previous data in 2001.

But, according to gross national income data, the average income accruing to New Zealand residents left New Zealand marooned in 21st position, one below Spain.

New Zealand's gross national income per capita is about 5 per cent below GDP because income accruing to foreign investments here exceeds that of New Zealanders' overseas investments.

The latest data, for 2003, shows New Zealand per capita GDP was US$21,635 ($30,744), while the gross national income was US$21,120.

New Zealand also has one of the highest levels of foreign debt in the OECD.

Finance Minister Michael Cullen and Economic Development Minister Jim Anderton acknowledged there was "still some distance to go to restore New Zealand to the top half of the OECD league table".

The report is mainly positive about the direction for most indicators, although New Zealand's overall ranking for many remains low.

It notes the decline in relative GDP per capita during the late 1970s and late 1980s appears to have halted and, in the past five years, growth has bettered the OECD average.

- NZPA