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Infometrics May newsletter
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May 2022
NEWSLETTER

May 2022 has been a busy month, with the publication of our Quarterly Economic Monitor for the start of 2022, and Budget 2022 dominating headlines toward the end of the month. We’ve covered both of these, and more, in the May Newsletter.

Managing Director Andrew Whiteford has drawn on the Infometrics Sector Profiles to produce our 2021 Creativity Index, finding that Wellington City remains the most creative place in New Zealand!

Senior Economist Nick Brunsdon has examined commercial amenity around New Zealand and how different areas stack up.

Chief Forecaster Gareth Kiernan analyses the building sector, and the looming risk of further construction liquidations as cashflow challenges bite.

Our Quarterly Economic Monitor showed Omicron and supply chain issues have limited the economic advance, with underlying growth at the start of 2022 flat from last quarter. Read Principal Economist Brad Olsen’s media release on the findings.

And finally, Brad rounds out the newsletter with our regular Chart of the Month, showing Treasury forecasts of higher for longer inflation, as part of a wrap of our Budget 2022 analysis.

New Zealand’s most creative city in 2021
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Although the top ranking in the Infometrics Creativity Index remained the same in 2021, there were some movements further down the ranking as COVID-19 impacted local economies differently.
Beautiful view, where are the shops?
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New Zealand is a beautiful country and all of our towns and cities can claim some form of natural amenity when it comes to attracting tourists and migrants. Being a coastal country, we are rarely far from a beach. Even our inland centres are blessed with magnificent rivers and mountain vistas. Ask anyone – whether a professional involved in economic development and tourism, or a resident on the street – what is special about their area, and their first answer will often relate to natural amenity.
More liquidations to come as cashflow becomes critical
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Recent news that Armstrong Downes Commercial had gone into liquidation is, unfortunately, likely to be only a harbinger of further business failures in the construction industry over the next couple of years. Armstrong Downes’ collapse follows the liquidation of a smaller firm building townhouses in Auckland, OD 2019, which blamed project delays, COVID-19, and increased costs for its insolvency.
Media Release: Omicron and supply issues limit economic advance
Shipping
Economic momentum stalled at the start of 2022, as Omicron limited economic activity. Infometrics’ March 2022 Quarterly Economic Monitor shows economic activity rose 2.0%pa in the quarter on provisional estimates, with underlying growth flat from last quarter as workers and materials became even harder to find at the start of 2022.
Chart of the Month: Inflation “principal economic challenge” in Budget 2022
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Budget 2022 revealed not only the Government’s plans for the year ahead, but also new forecasts from Treasury of the economic outlook for New Zealand. They present a concerningly persistent level of inflation, with substantial flow-on effects for households, businesses, and the Government’s own funding.
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