Infometrics October newsletter
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October 2016

Labour weekend has been and gone, but wasn’t it nice to have a relaxing long weekend to enjoy! We hope your batteries are recharged for the last couple of months of 2016.

In this month’s newsletter, we address a range of issues.  Andrew Gawith takes a look at the future for electric vehicles and what policy actions must be taken, while Benje Patterson explores recent changes to migration policy and what effects these changes might have on industries suffering skills shortages.

We delve once more into the world of commercial property, arguing that yields in Tauranga and Hamilton look alluring compared to Auckland.  Economic conditions in the regions are also covered, with Benje Patterson showing the hottest growth is in secondary urban centres and tourism hotspots, with only some dairying and mining regions struggling.

Electrifying Change
Shifting our vehicle fleet to renewable electricity is an obvious and urgent action if the government is to achieve the greenhouse gas (GHG) emissions target it set itself last year in the lead up to the Paris climate conference. A recent report by Concept Consulting confirmed that electric vehicles (EVs) would be a sensible way to reduce our GHG emissions.
Regional growth isn’t only about the big cities
It has been a good year so far for most parts of regional New Zealand, with much of the country enjoying healthy economic growth across a range of spending, investment, and labour market indicators. For many places, renewed interest in their local economies has been a welcome change, after years of subdued spending and population stagnation. This article gives a quick round up of some key themes apparent in Infometrics’ June 2016 Quarterly Economic Monitor, with links to more insights about selected areas.
Could commercial property experience an Auckland “ripple effect”?
Equity-rich Auckland homeowners selling up in the big smoke is by now widely recognised.  Might commercial property markets in Waikato and Bay of Plenty see a similar effect?
Migration tweaks to affect migrant composition rather than the number
Sky-high net international migration has been a key driver of economic growth in the New Zealand economy over recent years.  Even though per-capita economic growth has been lacklustre, the additional demand caused by this migrant influx has propelled New Zealand’s headline GDP growth rate to levels that are the envy of other developed nations.  Against this backdrop, it was interesting to see the government announce policies that ultimately make it more difficult to migrate to New Zealand.