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Growth in government procurement spend

Part of: Procurement news

Government procurement spend is now estimated to be $51.5 billion, or approximately 20% of GDP.

The increase reflects the government’s increased spending on transportation services, health care, education, and wellbeing, and the establishment of new government agencies.

The growth in government procurement spend highlights the increasingly important role public services have to play in driving greater public value and broader economic, environmental, social and cultural outcomes from their spending.

Statistics New Zealand calculated this figure based on 2019 data. It is an increase of nearly $10 billion (or 2% of GDP) on the estimate provided in 2017, which used 2014 data.

The estimate includes the procurement of all goods and services as well as the purchasing of fixed assets, such as infrastructure, across central and local government agencies. It also includes procurement by state-owned enterprises and agencies that operate in the private market, for example the Reserve Bank.

State-owned-enterprises have shown substantial increases to intermediate consumption, heavily influenced by fuel and energy prices.

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