Services sector could lift NZ economy

BusinessNZ supports the call for a new focus on services.

The Productivity Commission’s report on the services sector released today reveals its significant potential and challenges.

BusinessNZ Chief Executive Phil O’Reilly says more attention is needed on the sector’s potential for growth.

“As the dominant sector in New Zealand’s GDP, performance enhancements here could lift the economy overall.

“Challenges in the service sector include productivity lower than other OECD countries, constraints in availability of higher skills, and low penetration of overseas markets.

“The Productivity Commission’s analysis of the sector is welcome.”