Assessment and Recommendations
I. Recent Economic Performance
-The Pace of Growth Strengthened during 2001
-Export Prices and Tourism Underpinned Growth During Most of the Year
-Rising Employment and Export Sector Incomes Boosted Consumer Spending
-Investment's Contribution to Economic Growth Was Modest
-The Labour Market Was Tight
-Headline Inflation Has Declined, but Some Price Pressures Remain in the System
-The External Deficit Has Improved, But Only Temporarily
-Short-Term Outlook: The Lucky Country
II. Macroeconomic Policies
-Monetary Policy
-Fiscal Policy
III. Next Steps for Public Spending: The Pursuit of Effectiveness
-Overview and Main Themes
-Long-Term Expenditure Trends: Rise, Fall, Stabilisation
-Budget Strategy: Making Sure the Budget Mirrors the Government's Goals
-Some Further Challenges
-Strengthening Top-Down Expenditure Control
IV. Raising Potential Output Growth
-Putting Growth Performance in Context
-Investing in Human Capital
-Stimulating Firm Creation
-Seizing the Benefits of ICT
-Encouraging Innovation
-Strengthening the Fundamentals
-Summing