7 Aug 2012

Warning high debt levels hampering growth

1:45 pm on 7 August 2012

The Reserve Bank says high debt levels have hampered the economy's ability to grow quickly.

In a speech to the Employers and Manufacturers Association in Auckland, the central bank's governor, Alan Bollard, told his audience the accumulation of debt has played some role in low rates of economic and productivity growth.

Dr Bollard says that's not been helped by a limited shift in resources to the export sector which would help reduce debt, due to weak demand globally.

He says reducing high debt will be a slow, gradual process.