IMF declares global economic reset: Now is the time to embrace a Wellbeing Economy
By Gareth Hughes, Director Wellbeing Economy Alliance Aotearoa
The International Monetary Fund’s April 2025 World Economic Outlook is a stark reminder of the fragile foundations of our current economic system. The IMF writes:
‘The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era. Existing rules are challenged while new ones are yet to emerge.’
Slower global growth (2.8% projected for 2025) driven by rising trade tensions, policy uncertainty, and global instability signals more than a downturn — it signals a deeper need for change.
But this isn’t just a story of risk. For forward-looking businesses and decision-makers, it’s another call to reimagine economic success around purpose, place, prevention, and greater democratic participation.
Beyond GDP: What are we really measuring?
In many ways, the IMF is still speaking the language of a bygone era, one that equates progress solely with GDP. But as William Bruce Cameron put it, ‘not everything that counts can be counted and not everything that can be counted counts.’ GDP doesn’t tell us whether people are thriving, if workers are fairly paid, or if our ecosystems are healthy and resilient.
We believe it’s time to move from a narrow focus on economic growth to a broader, balanced vision of wellbeing. A future where economic and business success is aligned with environmental sustainability, social equity and community prosperity. It’s the quality of economic activity that matters, not the quantity.
You can read more about our global work to move beyond GDP here.
The business case for a Wellbeing Economy
In Aotearoa New Zealand and beyond, businesses are increasingly aware that long-term profitability depends on social licence to operate, climate resilience and ethical supply chains. The IMF’s warnings reinforce that now is the time to future-proof our economic models. The Wellbeing Economy model focuses on meeting the needs of people within the limits of our planet. That means:
New metrics for progress: Wellbeing indicators that emphasise health, environmental sustainability, equality and quality of life that provide a truer reflection of progress than GDP.
Intergenerational approaches: We can put future generations at the core of our government and public service decision-making which will enable intergenerational wellbeing.
Embracing place: From co-operative business models, Community Wealth Building to Te Tiriti-based governance, we can build prosperous economies rooted in place.
Innovating for resilience: Circular economy design and social enterprise models are outperforming traditional approaches on many measures. Let’s invest in regeneration such as modern climate-smart infrastructure, not extraction.
Aotearoa’s opportunity to lead
The IMF notes that New Zealand is relatively insulated from the worst of the global shocks. That gives us a unique opportunity. Instead of chasing the same old metrics, we can lead by example, showing the world what it looks like to put wellbeing at the centre of economic decision-making.
As a nation famous for Marilyn Waring’s leadership questioning GDP, pioneering broader measures of progress such as the Living Standards Framework and is embedding Māori values like kaitiakitanga (guardianship) and manaakitanga (care) into decision-making, we are uniquely positioned to model a different kind of prosperity.
Our communities and businesses can lead the way — by aligning our purpose with people and planet, embracing transparent impact measurement and working collaboratively across sectors to build a future-ready economy.
What comes next?
The IMF report gives us another data point that the world’s economy is changing. This is our moment to reimagine economic success — not as growth at any cost, but wellbeing by design.
Want to explore how you or your organisation can align with the Wellbeing Economy? Let's kōrero.
