Assessment and Recommendations I. Recent Economic Trends and Short-Terms Prospects -The International Backdrop -The Domestic Situation -The Near-Term Outlook II. Current Policies -Monetary Management -The Fiscal Stance -Structural Policies III. The Medium-Term Economic Strategy -Evolution of the Strategy -Progress in Implementation -Evaluation -Lessons for the Future Annex I. Policy Targets Agreement 1997 Annex II. Public Sector Indicators Annex III. A Brief History of New Zealand's Economic Reforms Annex IV. Chronology of Main Economic Events