New Zealand Economy

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Magnificent Jacinda Adern drops hammer on temporary work visas

New Zealand’s Adern Government has taken the sensible step of restricting temporary visa numbers to ensure that foreign labour does not compete against unemployed New Zealanders: Both big and small companies are scrambling to hang on to their workforces, with thousands of temporary resident visas set to expire all at once…. There were about 350,000

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NZ house prices rocket as it goes COVID free

With New Zealand eliminating COVID-19, its housing market has experienced a sharp bounce. The median house prices across New Zealand increased by a seasonally adjusted 3.8% in the month of June and by 10.1% year-on-year: It was the 105th consecutive month of year-on-year price increases. The REINZ is triumphant: Bindi Norwell, Chief Executive at REINZ

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Jacinda Adern opens door to Trans-Tasman travel bubble

New Zealand Prime Minister, Jacinda Adern, has opened the door for a trans-Tasman travel ‘bubble’ between Australia (ex-Victoria) and New Zealand by September: New Zealand Prime Minister Jacinda Ardern has reiterated that the billion-dollar tourism trade trans-Tasman bubble could go ahead in September with “safe” Australian states such as Queensland… Travel industry veteran and co-chair

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New Zealand blocks international students for 2020

Very sensible. From Bloomie: New Zealand’s road to economic recovery is unlikely to include the return of foreign students this year, Finance Minister Grant Robertson said. While the nation’s successful elimination of community transmission of Covid-19 should make it an attractive destination for international students, it will take some time to establish the quarantine facilities

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Jacinda Adern won’t open borders for international students

New Zealand has suffered a mini outbreak of COVID-19 cases imported from returning travelers: After previously declaring the country was coronavirus-free, New Zealand has now recorded seven new cases within the last week. All of those cases were imported from abroad, with Ms Ardern on Monday predicting more cases in the coming weeks. She said

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NZ GDP collapsed 1.6% in Q1

Statistics New Zealand has released its national accounts data for the March quarter, which reported a heavy 1.6% fall in real GDP – the largest fall in 29 years – with per capita GDP crashing 2.2%: Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as

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NZ beats COVID-19. Fully opens domestic economy.

When the coronavirus pandemic was initially taking off, MB spent considerable effort urging the federal government to close Australia’s international border, alongside shutting down public gatherings. Our views were influenced by the famous experience of Philadelphia versus St Louis in the Spanish Flu of 1918, outlined in Public health interventions and epidemic intensity during the

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Jacinda Adern rejects Trans-Tasman travel bubble

Yesterday, Australian Chamber of Commerce and Industry released a plan to implement a trans-Tasman travel bubble in an effort to resuscitate the tourism sector. The plan proposed using a Canberra to Wellington route as a test path with politicians, business industry leaders and journalists first passengers on initial flights to ensure its safety before being

13

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

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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

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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

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,

4

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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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

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Migrant work visas surge under Jacinda Adern

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