The OECD is pointing to an economic hangover in our economy in its biennial report. 

It's advising the Government to gradually get the books back into surplus, with economic growth still sluggish and productivity waning. 

The OECD also supports cutting government spending but warns of unintended consequences from doing so. 

Independent economist Cameron Bagrie told Mike Hosking that there was one issue in the report for the Government to be especially aware of. 

He says it's expected poor education outcomes will take a bit of an economic hit to our productivity over the coming years. 

LISTEN ABOVE 

• OECD report outlines strategies to boost productivity ahead of Budget 2024
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• OECD: NZ shouldn’t borrow to pay for tax cuts