The latest BusinessNZ Planning Forecast shows New Zealand’s economy is under pressure from factors both domestic and abroad, with only marginal growth expected in the next 12 months.
BusinessNZ Director of Advocacy Catherine Beard says that while business confidence is improving, there is still a long way to go.
“We’re coming back from historically low levels of business confidence, with some of the worst we’ve seen in the past 10 years.
“Investors remain cautious – with factors like decreased demand, the upcoming election and the impact any change in policy will have on business being front of mind.
“Likewise, consumers are feeling the squeeze of prolonged high inflation, increased mortgage repayments, rising costs at the supermarket and at the pump. Spending is going to remain tight as people curb any extra spending on top of the basics.
“Our economy has seen a small bump from the FIFA World Cup and increased net migration, but overall growth for the next 12 months is expected to be minimal.”
Further abroad, global economic gains will continue to be slow for the next few years as countries focus inward.
“The price of oil is up, while the price for agricultural goods is down, which is unwelcome news for trade in our part of the world.”
The BusinessNZ Economic Conditions Index for the September 2023 quarter sits at -6 which is down 3 on the previous quarter and down 9 on a year ago. The Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence. The full planning forecast can be found on the BusinessNZ website