New Zealand Economy

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NZ facing worst ever economic downturn

The Reserve Bank of New Zealand (RBNZ) yesterday released its bi-annual Financial Stability Report (FSR), which stated that the nation faces its sharpest economic contraction in 160 years: In New Zealand, border closures and economic lockdowns have led to an unprecedented decline in economic activity. Even accounting for an expected recovery in the second half

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NZ’s “fastest ever” population rockets past 5m

New Zealand Prime Minister, Jacinda Adern’s, election promise to slash immigration looks even more ridiculous after the country’s population surged past 5 million people in record time: New Zealand’s resident population provisionally reached 5 million in March 2020, Stats NZ said today. “This is a significant event for New Zealand,” population insights senior manager Brooke

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NZ immigration hits record high as Kiwis rush home

From Statistics New Zealand: Annual migrant arrivals of New Zealand citizens are provisionally estimated at 42,800 for the year ended March 2020, with almost half of these arriving between December 2019 and March 2020. This is the highest annual number on record… Annual migrant departures of New Zealand citizens are provisionally estimated at 35,700 for

12

RBNZ expands QE program

The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee has agreed to significantly expand the Large Scale Asset Purchase (LSAP) program potential to $60 billion from $33 billion: The Monetary Policy Committee has agreed to significantly expand the Large Scale Asset Purchase (LSAP) programme potential to $60 billion, up from the previous $33 billion

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Why would Australia open to New Zealand?

Via Bloomie: Australia and New Zealand’s prosperity is built on trading with the rest of the world: nimbly negotiating ebbs and capitalizing on flows. Borders are closed but, with coronavirus outbreaks in the two nations’ coming under control, they’re turning to one another. Winston Peters, New Zealand’s deputy prime minister, kicked off the idea of

2

RBNZ launches QE

Via RBNZ: The New Zealand Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee agreed that further monetary stimulus is needed to meet its inflation and employment objectives. Globally, the

0

NZ GDP slows as consumers shut wallets

Statistics New Zealand has released its national accounts data for the December quarter, which revealed a 0.5% rise in GDP with household consumption spending slowing to its lowest level in six years: Gross domestic product (GDP) grew 0.5 percent in the December 2019 quarter, after a 0.8 percent rise in the previous quarter, Stats NZ

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NZ housing bubble returns with a vengence

The REINZ has released its house price data for February, which revealed a 4.1% increase in median values over the month, with values nationally surging by 14.3% year-on-year to another record high: The summary breakdown shown below: Outside of Auckland, median house prices rose by 4.8% in February, with prices up 11.8% year-on-year. Whereas Auckland’s

17

Westpac: Housing market “to skid to a halt” on virus

Westpac New Zealand has released analysis on the economic impacts of the coronavirus, which forecasts that New Zealand’s “currently rampant” housing market will “skid to a halt” over the second quarter. However, it will rebound from 2021 as monetary stimulus bites: The currently rampant housing market is likely to skid to a halt, with price

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Why is New Zealand sick of Jacinda Ardern?

In the lead-up to the September 2017 New Zealand general election, Labour promised to reduce immigration by around a third by cutting the numbers of work and student visas: …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has happened without the Government planning for the impact immigration is

2

NZ house prices rocket to new all-time highs

The REINZ has released its house price data for January, which revealed a 2.1% seasonally adjusted increase in values over the month, with values nationally surging by 11.8% year-on-year to a new record high: The breakdown by region is shown below: Outside of Auckland, seasonally adjusted house prices rose by 1.5% in January, with prices

22

Jacinda Adern exposed

With seven months to go before the national election, New Zealand Prime Minister, Jacinda Adern’s, hold on power is looking increasing insecure after a series of broken election promises: Three years ago, Ardern was elected on a promise to “transform” New Zealand in the most exciting vote the country had seen in decades… Ardern’s Labour

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Why New Zealand should boot Jacinda Ardern

Via Bloomie: New Zealand Prime Minister Jacinda Ardern could be facing a tough battle to win re-election this year, with her opponents holding a small lead seven months out from the vote, a new poll shows. The opposition National Party is steady on 46% support, retaining its position as the country’s most popular political party,

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New Zealand unemployment falls, wages lift

Statistics New Zealand has released labour market data for the December quarter, which reveals both falling unemployment an rising wage growth. New Zealand unemployment fell to 4.0% from 4.1% (revised) in the September quarter: The labour underutilisation rate also fell to an 11-year low of 10%: The seasonally adjusted underutilisation rate fell to 10.0 percent

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Jacinda Adern’s boulevard of broken promises

Interest.co.nz has published an interesting article on how this year’s national election campaign will confront exactly the same housing problems as the 2017 election: Labour will be stuck between a rock and a hard place campaigning on housing issues ahead of the election. On the one hand it has house price growth to thank for

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NZ housing market ended 2019 with a bang

The REINZ has released its house price data for December, which revealed a 0.4% seasonally adjusted increase in values over the month, with values nationally surging by 12.4% year-on-year to a new record high: The breakdown by region is shown below: Outside of Auckland, seasonally adjusted house prices rose by 0.7% in November, with prices

6

New Zealand humiliates Recessionberg with big infrastructure spend

Via Stuff: The Government will invest an extra $12b in infrastructure over the next four years, including $6.8b on transport. Finance Minister Grant Robertson unveiled the spending at the Half-Yearly Economic and Fiscal Update (HYEFU) on Wednesday afternoon, saying it was the right time to take advantage of low interest rates and “future-proof” New Zealand

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RBNZ drops $20bn capital requirement on Aussie banks

Bravo RBNZ again: The Reserve Bank of New Zealand today released its final decisions following its comprehensive review of its capital framework for banks, known as the Capital Review. Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have

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NZ Labour’s immigration lies exposed again

In the lead-up to the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has

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NZ hits 5M population target 30 years early

The New Zealand Herald business columnist, Liam Dann, lamented that the nation’s population is about to hit 5 million people 30-years earlier than projected in 2004: I have become obsessed with a Statistics New Zealand press release from 2004. It forecasts New Zealand’s population to hit 5.05 million people by 2050… Now I can’t get

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NZ home ownership crashes to 70-year low

New Zealand’s home ownership rate has plunged to 70-year lows, according to the latest Census: According to the 2018 census, only 64.5 per cent of New Zealanders own their own home, compared to nearly 74 per cent in the early 1990s. Shamubeel Eaqub said it was driven by a lack of affordability in New Zealand.

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NZ house prices hit record high

The REINZ has released its house price data for October, which revealed a 1.1% increase in values over the month, with values nationally also increasing by 7.6% year-on-year to a new record high: The breakdown by region is shown below: Outside of Auckland, seasonally adjusted house prices rose by 1.3% in October, with prices up

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Jacinda Adern’s immigration lies exposed again

In the lead-up to the September 2017 general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants arrive here. This has

0

NZ unemployment bounces off 11-year low

Statistics New Zealand has released its labour force data for the September quarter, with the unemployment rate rising 0.3% to 4.1% from last quarter’s 11-year low of 3.9%. Below are the key points from the release: Unemployment rate rose to 4.2 percent. Underutilisation rate fell to 10.4 percent. Employment rate was unchanged at 67.5 percent.