The economy – confronting risks

The economy – confronting risks

BusinessNZ Planning Forecast for the 2016 June quarter

 

New Zealand’s growth outlook is positive but there are risks, according to the BusinessNZPlanning Forecast.

BusinessNZ ChiefExecutive Kirk Hope says nearly all economic indicators are favourable.

“Sectoral data includingmanufacturing, construction, and tourism are strong, and the agriculturalsector is proving resilient in the face of current low prices.

“Net migration isstill driving demand and is good for growth, but also brings risks that must bemanaged,” Mr Hope said.

“It is thereforepleasing to see the Government seeking to address regulatory issues that areholding back growth, such as land supply for housing and businessdevelopment. 

“Regulatory reformshould be robust enough to provide certainty for business to invest.”

Mr Hope said a keyrisk factor in the economy was high levels of household and farm debt, creatingsome vulnerability to a correction in asset prices or rise in interest rates.

The BusinessNZPlanning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI)which tracks 33 economic indicators including GDP, export volumes, commodityprices, inflation, debt and business and consumer confidence.

The BusinessNZPlanning Forecast for the June 2016 quarter sits at 7, up 8 on the previousquarter and up 4 on a year ago.

TheBusinessNZ Planning Forecast for the June 2016 quarter is on businessnz.org.nz/ R

Contact:

Phone:

Email:

23 Jun, 2016
| Media Releases

Related News

BusinessNZ supports fast-track Bill

Apr 9, 2024 |

BusinessNZ welcomes the introduction of the Fast-Track Approvals Bill and its referral to the Environment Select Committee for public submissions, but says resourcing of the expert panel is critical to achieving its objective. BusinessNZ Chief Executive Kirk Hope says...

Transport for the long-term

Mar 5, 2024 |

The Government’s policy statement on transport indicates a long-term vision, BusinessNZ says. BusinessNZ Advocacy Director Catherine Beard said the Government Policy Statement (GPS) on Land Transport showed a sound approach to funding and appropriate long-term...

Better approach to business payments needed

Feb 22, 2024 |

BusinessNZ supports the repealing of the Business Payment Practices Act. “BusinessNZ is instead working with its large business group to develop a voluntary code to ensure small businesses are paid on a timely basis,” BusinessNZ Chief Executive Kirk Hope said. Mr Hope...

NZ Economy: Turning the page

Dec 11, 2023 |

The latest BusinessNZ Planning Forecast shows business confidence is increasing, but New Zealand’s economic growth is still expected to be relatively low over the forecast period out to December 2025.

ENTERPRISES WORRIED ABOUT COST OF DOING BUSINESS

Sep 22, 2023 |

The high cost of doing business is the stand-out issue for New Zealand businesses, according to the results of the Deloitte and Chapman Tripp Election Survey released today. 93 percent of respondents said changes made by the Government had increased their cost of...