Economic growth has been faster in New Zealand than in most other OECD countries in recent years. Inflation and inflation expectations are well anchored, but the current account has been in sizeable deficit for some time. Strong fiscal and monetary policy frameworks and a healthy financial sector have yielded macroeconomic stability, underpinning growth. Employment is high, in large part thanks to flexible labour markets and ample immigration, business investment is robust, and households and firms are optimistic. Well-being is high, although a considerable income gap with the top half of the OECD remains. However, bottlenecks in housing, urban infrastructure and skills, inequalities in living standards, and rising environmental pressures all pose risks for sustaining growth. The government is moving to deal with these weaknesses.