Disposable income of new zealand

Disposable income in New Zealand refers to the amount of money that households have available to spend or save after paying taxes and other essential expenses. Here are some key statistics on disposable income in New Zealand:

  1. Average disposable income: According to Statistics New Zealand, the average disposable income per household in New Zealand was NZD 63,000 (approximately USD 40,000) in the 2019/2020 financial year.
  2. Disposable income as a percentage of GDP: Disposable income accounts for around 70% of New Zealand's Gross Domestic Product (GDP). This means that about 70 cents out of every dollar of economic activity in New Zealand is disposable income.
  3. Household disposable income growth: Disposable income has been growing steadily in New Zealand over the past decade, with an average annual growth rate of around 3.5%.
  4. Regional disparities: Disposable income varies significantly across different regions in New Zealand. For example, households in the Auckland region have a higher average disposable income (around NZD 85,000) compared to those in the Southland region (around NZD 45,000).
  5. Income inequality: New Zealand has a relatively high level of income inequality, with the top 10% of households holding around 30% of the country's total disposable income. The bottom 10% of households, on the other hand, hold around 2% of the country's total disposable income.
  6. Disposable income and consumer spending: Disposable income is a key driver of consumer spending, which accounts for around 60% of New Zealand's GDP. As disposable income increases, households are more likely to spend on goods and services, which can boost economic growth.
  7. Factors influencing disposable income: Disposable income in New Zealand is influenced by a range of factors, including:
    • Employment rates and wages
    • Tax rates and policies
    • Government spending and transfers
    • Interest rates and borrowing costs
    • Global economic conditions

Some of the key drivers of disposable income in New Zealand include:

  1. Strong employment growth: New Zealand has experienced strong employment growth in recent years, which has boosted disposable income.
  2. Low unemployment: Unemployment rates in New Zealand are relatively low, which has helped to increase disposable income.
  3. Wage growth: Wage growth has been steady in New Zealand, which has helped to increase disposable income.
  4. Government spending: Government spending on social welfare and other programs has helped to increase disposable income.
  5. Low interest rates: Low interest rates have made borrowing cheaper, which has helped to increase disposable income.

Overall, disposable income in New Zealand is influenced by a range of factors, and it is an important driver of consumer spending and economic growth.