Economic inequality in New Zealand

Economic inequality in New Zealand is one of the social issues present in the country.

Between 1982 and 2011, New Zealand's gross domestic product grew by 35%. Almost half of that increase went to a small group who were already the richest in the country. During this period, the average income of the top 10% of earners in New Zealand (those earning more than $72,000)^[1] almost doubled going from $56,300 to $100,200. The average income of the poorest tenth increased by 13% from $9700 to $11,000.^[2]

Growing inequality is confirmed by Statistics New Zealand which keeps track of income disparity using the P80/20 ratio. This ratio shows the difference between high household incomes (those in the 80th percentile) and low household incomes (those in the 20th percentile). The inequality ratio increased between 1988 and 2004, and decreased until the onset of the Global Financial Crisis in 2008, increasing again to 2011 and then declining again from then. By 2013, the disposable income of high-income households was more than two-and-a-half times larger than that of low-income households.^[3] In 2019 it was 2.7 times.^[4] Highlighting the disparity, the top 1% of the population now owns 16% of the country's wealth – the richest 5% owns 38%^[5] – while half the population, including beneficiaries and pensioners, earn less than $24,000.^[1]