Infometrics February newsletter
Russian invasion to increase prices, global uncertainty
The global security picture has been upended after the Russian invasion of Ukraine last week, with heavy fighting across all invasion fronts, substantial sanctions on Russia by Western countries, and Russian President Vladimir Putin ordering the country’s nuclear deterrence forces “to a special mode of combat duty.” Global tensions are ratcheting higher, with increased uncertainty about the global economic outlook. Prices for energy products, farm inputs, and metals have risen, and financial markets are volatile as the Russian financial system feels the pressures of isolation.
How the labour market recovery is taking shape
Examining the local and industry effects of the first year of COVID-19
Recent Infometrics data provides the first comprehensive analysis of the impact of COVID-19 on different industries and local areas across New Zealand. Our regional and sector data, which sits behind our Regional Economic Profiles and Sector Profiles, was updated in early February 2022 with estimates for the year ending March 2021. Our analysis shows a considerable shock to parts of the New Zealand economy, and the weakest period of employment activity since the Global Financial Crisis (GFC).
A determined but short-lived bounce for regional economies at end of 2021
Economic activity staged a comeback in the December 2021 quarter as Delta restrictions were gradually eased at different times across the country, with mixed results seen across regional economies. Infometrics’ December 2021 Quarterly Economic Monitor shows economic activity rose 2.8%pa in the quarter on provisional estimates, with delayed demand after the Delta restrictions being unleashed, and a reasonable summer being enjoyed across many local economies.
Chart of the Month: The rising cost of essentials
The cost of living is rising at an accelerating rate, leaving household budgets squeezed as wages rise at a slower pace. But just what do the increase in prices mean at a dollar level for Kiwi households? Our February 2022 Chart of the Month seeks to examine the additional cost each week that Kiwis are paying for some of the essentials.