Hon Bill English
Minister of Finance
24 June 2014
Media Statement
NZ among better performers on inequality - OECD
New Zealand was one of only six developed economies in which both income inequality and disposable income inequality was
flat or slightly better between 2007 and 2011, according to the Organisation for Economic Cooperation and Development.
In its latest report, which looks at the impact of the global financial crisis on inequality across 33 developed
economies, the OECD confirms New Zealand performed relatively well through the GFC and its aftermath, Finance Minister
Bill English says.
“The domestic recession in New Zealand under the previous government in early 2008 and the global financial crisis that
followed were tough on many New Zealanders and their families,” he says.
“However, this Government ran large deficits and borrowed through that period to continue its significant support
programmes. At the same time, we also set a track back to surplus and supported an economic recovery that is now
delivering more jobs and higher incomes.
“This latest OECD research confirms that while inequality increased in many OECD countries during the global financial
crisis, this was not the case in New Zealand.”
Using data compiled for the Ministry of Social Development’s household incomes report, the OECD’s latest Income Inequality Update confirms that both income inequality and disposable income inequality were flat or slightly better in New Zealand
between 2007 and 2011.
It also finds that the disposable incomes of the top 10 per cent of New Zealand’s income earners were hit harder than
the bottom 10 per cent of income earners through this period.
“Across the OECD as a whole, the opposite was true,” Mr English says. “The bottom 10 per cent of disposable incomes fell
by twice as much through the GFC and the top 10 per cent.
Mr English says that the Government remains focused on supporting the most vulnerable New Zealanders by improving public
services, lifting education standards and supporting more New Zealanders off welfare and into work.
“It’s in these areas that we can make a real difference to the lives of New Zealanders most in need.”
The OECD’s Income Inequality Update is available at: