New Zealand GDP is our country’s total income: if we add everyone’s income, from household wages to business profits and government surpluses we get GDP. GDP can also be measured as the value of all the goods and services produced in the economy. In New Zealand this is the preferred the measure of economic activity.
To measure the value of goods and services is to calculate the total expenditure on consumption, investment and exports, less the spending on imports. This is probably the most intuitive way to think about the economy: our production is determined by how much people are willing to spend.
As per below it is interesting Australian Reserve Bank economists consider public sentiment around real estate and property ownership as an indicator not to be ignored as a potential flashpoint for dragging down their economy.
Source: ABC News-By business reporter Daniel Ziffer.
“Reserve Bank economists considered urging the Federal Government to shut down the real estate industry, “pausing” sales of established homes to avoid perceptions of a coronavirus-inspired housing market crash.”
Read ABC News story here: https://ab.co/3fQRi2B