NZ still dragging feet on income

New Zealand still ranks as a "low-middle" income nation, Organisation for Economic Co-operation and Development figures show.

An index of 42 countries collated by the OECD ranks New Zealand 22nd in purchasing power parity (PPP).

PPP is a measure that accounts for differences in the prices of about 3000 goods and services in each country. The prices were recorded in 2002.

PPP is combined with gross domestic product to give what the OECD believes is a true picture of each country's economic strength and performance.

New Zealand's ranking as a low-middle income country is largely unchanged since the last comparison, in 1999.

Other countries in the group include Spain, Israel, Greece, Malta, Korea and Portugal.

New Zealand's real GDP per head rating of 86 lags behind Australia, which ranked 14th overall with a rating of 110.

Australia is in the high-middle income group, behind Sweden with 111 and ahead of Finland on 109.

It was also ahead of Japan, France and Germany.

Countries with real GDP per head ratings over 120 rank as high income, those with 100-120 qualify as high-middle, 60-99 is low-middle and a rating below 50 is low income.

Luxembourg, a banking and insurance centre, tops the list with a real GDP a head of 205 - and an average annual wage of $66,618 (NZ dollars) - followed by Norway on 144 and the US on 142.

The groupings were generally unchanged from 1999, although Ireland rose from 114 to 129 to rank as the fourth highest country ahead of Switzerland. It now ranks as a high-income country.

How they rate

High income countries

Luxembourg, Norway, United States, Ireland, Switzerland.

High middle income

Austria, Denmark, Netherlands, Canada, Iceland, United Kingdom, Belgium, Sweden, Australia, Finland, France, Japan, Italy Germany.

Low middle income

Spain, Israel, New Zealand, Cyprus, Greece, Portugal, Slovenia, Korea, Malta, Czech Republic, Hungary.

Low income countries

Slovak Republic, Estonia, Poland, Croatia, Lithuania, Latvia, Mexico, Russian Federation, Bulgaria, Romania, Turkey, Yugoslav Republic of Macedonia.