New Zealand Ranked Last in Global Savings: Statistical Anomaly or Structural Crisis?

A global ranking places New Zealand at the bottom of net household savings. Economists explain why the -1.3% figure might be misleading and the role of property.

By: AXL Media

Published: Apr 27, 2026, 4:12 AM EDT

Source: RNZ Pacific

The Global Rankings: Where NZ Stands

Recent data circulated by Visual Capitalist has sparked concern among New Zealanders, showing the nation trailing behind all other measured countries in net household savings. The ranking places Sweden at the top with a robust 16% savings rate, followed by Hungary (14.3%) and Czechia (13.7%). New Zealand sits at the very bottom at -1.3%, effectively meaning that, on average, households were spending more than they earned during the period measured. South Africa (-1%) and Latvia (0%) rounded out the bottom three, while Australia maintained a middle-of-the-pack position at approximately 6%.

Timing and the "Interest Rate Cycle"

Westpac chief economist Kelly Eckhold has cautioned against taking the -1.3% figure as a permanent indictment of New Zealand’s fiscal habits. He noted that the data was pulled from 2023, a year that marked the peak of an aggressive interest rate tightening cycle. During this period, many Kiwi households were forced to draw down on existing savings to manage mortgage repayments and the rising cost of living. Internal Westpac data suggests that since that low point in 2023, the savings rate has begun to improve significantly as households adjust to the new economic reality.

The Property Trap: Saving in Bricks and Mortar

A significant factor in New Zealand’s poor ranking is how Kiwis choose to accumulate wealth. Gareth Kiernan, chief forecaster at Infometrics, points out that New Zealanders historically favor the property market over financial assets like shares or bonds.