Pacific Rim: update on capital stock

The Pacific Rim region includes two countries (Japan and New Zealand). Annual growth in capital stock was four percent for Japan and eight percent for New Zealand. Japan continues its long-term trend of moderate growth in new residential and non-residential investments. Construction prices have been historically stable, although they have increased since 2020. In New Zealand, the country has sustained high levels of capital stock investment since 2018. Auckland, which houses a third of the country’s population and accounts for nearly 40 percent of the country’s gross domestic product, has experienced a recent boom in new housing construction. The construction boom can be attributed to policy changes meant to combat housing supply shortages and rising housing costs.