The economy - confronting risks
23 June 2016
New Zealand’s growth outlook is positive but there are risks, according to the BusinessNZ Planning Forecast.
BusinessNZ Chief Executive Kirk Hope says nearly all economic indicators are favourable.
"Sectoral data including manufacturing, construction, and tourism are strong, and the agricultural sector is proving resilient in the face of current low prices.
"Net migration is still driving demand and is good for growth, but also brings risks that must be managed," Mr Hope said.
"It is therefore pleasing to see the Government seeking to address regulatory issues that are holding back growth, such as land supply for housing and business development.
"Regulatory reform should be robust enough to provide certainty for business to invest."
Mr Hope said a key risk factor in the economy was high levels of household and farm debt, creating some vulnerability to a correction in asset prices or rise in interest rates.
The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt and business and consumer confidence.
The BusinessNZ Planning Forecast for the June 2016 quarter sits at 7, up 8 on the previous quarter and up 4 on a year ago.
For more information contact:
Kathryn Asare | Communications Manager, BusinessNZ
Email: email@example.com, Tel: +64 (0)4 496 6556, Mobile: +64 (0)21 555 744