First Time Buyer’s Grant Scheme to be Axed

This shift redirects funds to create approximately 1,500 new social housing units through external organisations rather than Kāinga Ora, the state housing agency. While existing applications for the grants will be processed, no new applications will be accepted immediately. Housing Minister Chris Bishop defended the move, explaining that the reallocation…

OECD Warns NZ Not to Borrow to Cut Taxes

The report specifically warned against borrowing that is not fully funded. The pandemic and subsequent spending overruns have significantly deteriorated New Zealand’s fiscal health, leading to a permanent rise in the government spending to GDP ratio. To address this, the OECD recommended a gradual approach to returning the government’s budget…

New Zealand Bank Holds Firm on Rates

Emphasizing the necessity for a restrictive monetary policy until inflation aligns with the central bank’s target range, the OECD also calls for prudent government spending to fortify the country’s fiscal position. The Reserve Bank of New Zealand (RBNZ) has stood firm on its decision to maintain a 5.5 per cent…

New Zealanders Facing Increasing Unemployment

With too many individuals vying for too few job opportunities, the landscape of employment is undergoing a profound transformation. Economists and policymakers alike are bracing for the inevitable rise in unemployment, with expectations hovering around 4.2 per cent by the end of March—a significant uptick from the current 4 per…

NZ Retailers Express Doubts About the Coming Year

As winter approaches, retailers in New Zealand are facing a challenging economic landscape, with bleak trading prospects casting a shadow over the industry’s outlook. According to a recent Retail NZ report, a significant portion of retail businesses are expressing concerns about their ability to navigate the next 12 months, with…

New Report Shows NZ Business Confidence Is Falling

The recent BDO Business Wellbeing Index, capturing insights from over 650 business leaders, suggests a lot of wavering confidence and apprehension in the markets. Following the election, a surge of positivity swept through the business community, with 61 per cent expressing optimism about their performance. However, this euphoria has since…

Disappointing News for NZ Retailers as Sales Fall

In March, retail spending in New Zealand fell by 0.7 per cent compared to February, following a 2 per cent decline in the previous month. This downward trend, characterized by Westpac senior economist Darren Gibbs as “very weak,” underscores the challenges facing the retail sector. Despite a 3 per cent…

New Home Build Numbers Plummet in 2023

This decline in residential construction activity reflects broader challenges facing the housing sector and the economy as a whole. According to Statistics NZ, only 36,276 new dwellings received consent during this period, marking a notable decrease of 24.8% compared to the preceding year and 27.2% compared to the year ending…

ANZ Survey Highlights Concerns Amidst Economic Downturn

The latest ANZ Business Outlook Survey for March revealed a notable decline in business confidence, with recorded levels dropping by 12 points to +23. Similarly, both the expected own activity measure and past activity figures saw decreases, indicating a general sense of unease among businesses. ANZ Chief Economist Sharon Zollner…