New Zealand’s domestic economy remains in a similar position to where it was 12 months ago: prospects of middling growth, somewhat hampered by capacity constraints and a tight labour market, and with some of the most significant potential shifts being driven by government policy and rule changes. In contrast to this largely unchanged domestic picture, many question marks have appeared during the last year over the international economic environment.
Infometrics’ new estimates of regional GDP show that Auckland was the fastest growing region in the year to March 2018, expanding by 3.9% (see Graph 1). Auckland has regularly been towards the top of the regional league table throughout the last seven years. Its growth during 2018 was underpinned by a strong services performance, with industries such as professional, scientific, and technical services, financial and insurance services, and retail trade all expanding by more than 5.0%
Kiwis have overwhelmingly supported the government’s plastic bag ban, which will kick in mid-2019. The ban presents the wider packaging sector of 50,000 workers with an opportunity to retool and grow itself as consumers increasingly look for more environmentally friendly options.
Infometrics welcomes David Friggens to the IT side of our team. David is a data analyst with a broad range of experience. Previously he worked at MBIE, Ministry of Education, and University of Waikato.
We chatted to David about what a day in his life is like…
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.
Small area boundaries have changed in New Zealand and Infometrics is gearing up for the changeover. We are evolving our Small Area Economic Profiles (http://www.infometrics.co.nz/product/small-area-profiles) into a more comprehensive Small Area Economic Framework based on the new boundaries.
Infometrics welcomes Rob Heyes as their newest senior economist. Rob joins Infometrics from MBIE, where he led research projects on migration trends and was the New Zealand representative to the OECD Migration Expert Group. Rob has a deep knowledge of labour markets and skills and works with our regional and sector clients.
We chat with Rob about what a day in the life of an economist looks like…
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.