ECONOMIC GROWTH

Press, Volume C, Issue 29435, 10 February 1961, Page 19

ECONOMIC GROWTH

Australia And N.Z. Compared

(From Our Own Reporter) WELLINGTON. Feb. 9. Contrary to popular opinion, the population of Australia is not increasing faster than New Zealand's, and the standard of living in New Zealand is probably no longer higher than in Australia. These conclusions are reached in a paper delivered to the conference of the New Zealand Association of Economists today by Mr J. W. Rowe, senior lecturer in economics at Victoria University. Australia’s population had risen 1.8 per cent a year since 1900, while New Zealand's had risen 2 per cent Between 1950 and 1900. the Australian population rose 25 per cent and New Zealand's the same, but the components of each figure was different. In Australia the natural increase was 18 per cent (New Zealand 18 per cent) and immigration 9 per eent <7 per cent). The gross national product in New Zealand in 1949-50 was £553m. Mr Rowe multiplied this by five to allow for the difference in population end exchange rate. This gave £ 2785 m, compared with £ 2718 m. Comparable figures 10 years later were: New Zealand £8165m; Australia £ 8778 m.

“Since the population growth during the last decade has been the same in both countries, it would appear that real income a head grew more rapidlv in Australia during the fifties. It is worth emphasising that this country’s immigration record in the fifties bears comparison with that of Australia—the country most often eited—particularly as our rate of natural increase is so high.” Production a man hour and production a man year were both higher in New Zealand than in Australia in 1938-39 Since then, however, productivity in Australia had risen faster than in New Zealand. Australian growth in productivity was now 2*4 per cent, and in New Zealand 1% per cent. To raise the New Zealand increase to the Australian level Mr Rowe estimated that an extra £7sm a year (was needed to bridge this gap.