Source: BusinessNZ
The BusinessNZ Planning Forecast for the December quarter shows only modest growth on the cards for New Zealand’s economy in 2025.
BusinessNZ Director of Advocacy Catherine Beard says after a tough year in business, there are still reasons to be optimistic.
“The end of 2024 looks like a bit of a mixed bag for business. Lower household spending means retail and hospitality continue to struggle. Tourism, while improving, is still performing below pre-covid levels.
“On the flipside, interest rates are coming down along with inflation, with more changes to the official cash rate signaled for the new year – something that will bring relief to households.
“Construction is subdued, with housing consent numbers still down. But the agricultural sector is seeing some wins with commodity prices continuing to improve, particularly dairy. Input prices have also receded to much lower levels than in the recent past.
“The challenges ahead in 2025 include keeping a lid on inflation, keeping excessive regulation from stifling business, plugging the brain drain to Australia, and getting on with the job to make New Zealand a better place to work, live and visit.”
The BusinessNZ Economic Conditions Index (ECI) is a measure of NZ’s major economic indicators. It sits at 8 for the December 2024 quarter, up 6 on the previous quarter, and up 8 on a year ago.
An ECI reading above 0 indicates that economic conditions are generally improving overall; below 0 means economic conditions are generally declining.
The full BusinessNZ Planning Forecast for the December quarter can be found on the BusinessNZ Website.
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
