Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Good growth but international risks

The BusinessNZ Planning Forecast for the September 2018 quarter shows continued growth but with some easing expected.

BusinessNZ Chief Executive Kirk Hope says global markets could bring risks over the medium term.

"Increased economic growth in China and the US indicate better investment and employment prospects, however protectionism and continuing high debt are bringing a large amount of uncertainty.

"The risk of a financial correction and the impact of interest rate rises are weighing on future growth prospects and New Zealand, as international trader, would not be immune from any fallout."

Mr Hope said uncertainty was the likely cause of current low levels of business confidence.

The New Zealand economy is forecast to grow at around 3 percent over the next two years and terms of trade, driven by meat and dairy returns, are robust.

Meanwhile there is currently little pressure on the Reserve Bank to raise interest rates and the exchange rate is still relatively favourable to exporters.

Domestically, employment continues to grow and unemployment has stabilised at the low rate of 4.5 percent.

The BusinessNZ Economic Conditions Index sits at 5 for the September 2018 quarter, up 1 on the last quarter and up 3 on a year ago.

The Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence.

The BusinessNZ Planning Forecast for the September 2018 quarter is on www.businessnz.org.nz.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Descend

Dairy product prices fell at the Global Dairy Trade auction as whole milk powder slid amid the prospect of increased supply. More>>

ALSO:

Deductible Horses: Peters' Bloodstock Investment Plan

“Cabinet has approved the final design of the bloodstock rules which were first signalled in Budget 2018. Investors new to bloodstock breeding will be able to claim tax deductions for the cost of horses, even if they don't own an existing horse breeding business...” More>>

Petrol Up 19%: Annual Inflation To September 1.9 Percent

The consumers price index (CPI) increased 1.9 percent in the September 2018 year, driven by higher petrol prices, Stats NZ said today. This follows a 1.5 percent annual inflation rate for the June 2018 year. More>>

ALSO:

Young Males Common Victims: NZ Tops List Of Most-Scam-Called Countries

Among the 16 nationalities surveyed for the 2018 Global Tech Support Scam Research conducted by TRG, New Zealanders reported the highest levels of exposure to tech scams, with more than three-quarters of us experiencing at least one. More>>