In its regular review of NZ's economy, the IMF noted the surging housing market could trigger a "pronounced correction". Finger said active labour market policies, the reform of vocational training and expanding the eligibility of training subsidies would help support those affected. Additionally, the report noted the surging housing market could trigger a "pronounced correction", which needed to be tackled with specific measures to dampen speculative demand and unlock supply. "Mitigating near-term housing demand, particularly from investors, would help moderate price pressures," it said. To address long-term affordability the IMF recommended policies that freed up land supply, improved zoning and allowed housing developments to be fast-tracked.

Source: New Zealand Herald March 12, 2021 03:10 UTC