The New Zealand economy continues to chart a more optimistic and upbeat path, as restrictions on economic and social activity remains lower than almost anywhere globally. The latest Infometrics Quarterly Economic Monitor shows regional economic activity in the December quarter continue to improve, although the hit to different areas is become starker, with tourism-related industries still feeling a much harder hit than other sectors.
The New Zealand economy has entered 2021 on a strong footing, having dodged a missile last year from COVID-19, according to Infometrics’ latest forecasts. The massive fiscal and monetary stimulus put in place last year, combined with our good public health outcomes, has limited the number of job losses, boosted the housing market and construction activity, and underpinned a strong rebound in economic activity after lockdown.
New Zealand’s economy rebounded strongly in the September quarter, with regional economies showing renewed strength as they get back on their feet. The latest Infometrics Quarterly Economic Monitor points to a surge in activity as the economy’s resilience saw businesses and consumers swing back into action after a substantial hit in the June quarter.
Despite rebounding well from the initial lockdown and effects of the COVID-19 pandemic so far, the New Zealand economy remains vulnerable, according to the latest projections from Infometrics. The company is forecasting a double-dip recession to hit during 2021, as delayed job losses punch a hole in consumer spending and drag economic activity lower.
The latest Infometrics Quarterly Economic Monitor shows a substantial hit to regional economies from the COVID-19 pandemic and New Zealand’s restrictions during the Level 4 lockdown alongside the move down the Alert Levels. The Monitor provides the most comprehensive analysis of regional economic changes so far during the pandemic.
Economics consulting firm Infometrics is pleased to announce new appointments to their board of directors, and a new chair of the board.
New Zealand’s successful public health response to the COVID-19 pandemic should not be taken to mean our economic struggles are over, according to Infometrics’ latest forecasts. Given that life has largely returned to “normal” at Alert Level 1, economic outcomes in the near-term will be better than initially feared. However, the full effects of the border closures, business failures, and job losses will only become apparent over the next 18 months.
New Zealand is set to experience a second wave of unemployment as the wage subsidy comes to an end. Businesses have already started to “consult” staff about workforce levels, and with the wage subsidy starting to run out this week, more job losses are in store, especially if that store is The Warehouse or Max.
The latest Infometrics Quarterly Economic Monitor shows the first signs of New Zealand’s economic slowdown as the COVID-19 pandemic and recession changes the way that businesses, households, and government operates.
The government has a clear opportunity to address New Zealand’s shortage of social housing and support the residential construction industry by significantly increasing construction of state houses over the next two years, says economics consultancy Infometrics.