Earlier this month, Infometrics economist Brad Olsen spoke at the Economic Development New Zealand 2018 Conference ‘Mahi Tahi’ about how to move towards measuring inclusive growth in NZ’s regions. This article summarises the key points of his presentation.
The latest Infometrics Infrastructure Pipeline Profile shows that average infrastructure investment across the country is expected to be 28% higher over the next 10 years compared to the 2010-2018 period. A total of $129 billion in capital projects are estimated to be built over the 2019-2029 period.
The August Monetary Policy Statement was the most influential yet under new Governor Adrian Orr, even though there was no change to the official cash rate (OCR). Mr Orr pushed out expectations for a rates hike until 2020, sending the New Zealand dollar sharply lower.
But it was the Governor’s assertion that rates could and would move lower, if weak indicators persist, that is both his biggest warning and most questionable stance.
Our latest Infrastructure Pipeline Profile sheds light on which infrastructure areas local councils are looking to invest in over the next 10 years. Capital spending by local councils is expected to top $53b over the next decade, compared to $39b over the previous nine years.
Last month, US President Donald Trump imposed tariffs on imports from Canada, Mexico, and the European Union, alongside tariffs on over US$34b of Chinese imports. Taking into account tariffs imposed earlier this year, about US$90b of Chinese imports to the US are now covered, with threats that all US$505b of Chinese imports could yet be hit.
Infrastructure spending around New Zealand is a hot topic. Our Chart of the Month for August details our understanding of infrastructure spending across New Zealand and what is being spent where.
Twenty-seven years after the Employment Contracts Act made union membership voluntary, the current coalition government has named Jim Bolger – the Prime Minister in 1991 – to head its Fair Pay Agreements working group. Fair Pay Agreements are meant to become the centrepiece of employment law policy, yet no one is quite sure yet what they are, or how they will alter employment relations. Among these changes, strike action by nurses, and union meetings, we thought we’d provide a primer on various aspects of the industrial relations scene.
Motorists have been incensed this week, with the price of 91 octane petrol heading over $2.30/l in some parts of the country. Increased fuel prices aren’t yet at the highest (real) levels we’ve ever seen – but they’re close. Based on the unrest in the Middle East, fuel prices might remain elevated for some time. This will hurt more than just the classic Sunday drive, with airfares, freight costs, and eventually goods prices also needing to increase to cover higher fuel bills.
Today’s Budget gives us a clearer picture of the government’s intentions for housing over the next four years. More practical KiwiBuild targets have been mixed in with increased spending for health and education building, alongside a state housing boost. However, details are scant, and increasing funding without detailing exactly where it will be spent signals to us that actual activity will be pushed back further.
Election 2017 saw some high-profile and costly spending promises by all three parties now in government, and expectations are high for more cash in the upcoming budget. Finance Minister Grant Robertson will lay out his spending plan on May 17, with a mixture of red, black, and green anticipated.