Supporting construction while rectifying state housing

A commitment from the government to build an additional 9,400 state houses over the next two years would mitigate the construction sector’s downturn, helping to prevent a repeat of the massive loss of capacity that occurred following the Global Financial Crisis. It is also an opportunity for the government to make a real difference in housing outcomes for some of society’s most vulnerable people, contributing to better wellbeing in a way that KiwiBuild was never going to do.

Media Release: Recovery likely to be slow, even with bold government initiatives

The New Zealand economy faces up to two years of consolidation following the COVID-19 pandemic, according to Infometrics’ latest forecasts released last week. Even with massive government intervention to cushion the downturn and stimulate a recovery, there is no way the economy can quickly and completely bounce back from the restrictions currently in place. Instead, the structural changes the New Zealand economy is undergoing will establish a new “normal” operating environment for businesses.

Well, that escalated quickly!

From a few concerns about the effects on Chinese tourism in late January to a full-blown pandemic and lockdown in New Zealand, the COVID-19 crisis has evolved rapidly over the last two months. We communicate just how quickly the economic ramifications have unfolded and examine how things might play out for the economy over the next 1-2 years.

Media Release: Mediocrity hangs over NZ economy’s 2020s outlook

Infometrics’ latest forecasts suggest there is little reason to be feeling more upbeat about New Zealand’s economic prospects, despite some improvement in confidence surveys over the last few months. The company expects growth to regain some momentum over the next year, but it believes nothing has changed to help the economy avoid mediocre results beyond 2021.

From the beach 2020

Economic growth, inflation, and interest rates around the globe remain significantly lower than they were prior to the 2008 Global Financial Crisis. The limited success of efforts to stimulate the economy over the last 12 years are reminiscent of the Japanese economy’s stagnation during the 1990s. Are other developed economies, including New Zealand, at risk of suffering the same malaise as Japan over the medium-term?

Inequality, tax, and the wealthy’s social responsibility

There’s a saying that it takes money to make money. There are, of course, exceptions to any rule, but this saying generally aligns with Thomas Piketty’s thesis (Capital in the Twenty-First Century) that if the rate of return on capital exceeds the economy’s growth rate, then wealth will gradually accumulate in the hands of fewer and fewer people. That is, if investment returns are growing faster than the economy, this wealth accumulates.

NZ short by nearly 40,000 houses

New Zealand’s housing market isn’t functioning as well as it should be, with higher house prices, rising rents, falling home ownership, and a lack of housing options. But just how large is the housing shortage that we continually hear about?