NZ economy – on course but some risks
The BusinessNZ Planning Forecast for the December 2017 quarter shows strength in many parts of the economy although with some risk from business sentiment and future wage pressures.
The manufacturing and services sectors are performing strongly and consumer confidence is high, BusinessNZ Chief Executive Kirk Hope said.
“Business confidence took a recent hit, although it has recovered somewhat since the election.
“Key indicators such as net debt levels are forecast to remain at relatively low levels by international standards.
“On the international scene a general recovery is underway, with accelerating growth in Europe, Japan, China and the US.
“Here at home a healthy GDP growth rate of around 3 per cent is forecast out to December 2019.
“In a context of relatively strong economic growth, there are however risks relating to business uncertainty around future wage pressures and proposals for agricultural emissions and water charges.”
The BusinessNZ Economic Conditions Index sits at 3 for the December 2017 quarter, up down 1 on the last quarter and down 11 on a year ago.
The Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt and business and consumer confidence.