Weekly Digest – 15 May 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

New Zealand faces economic crunch in late 2024

The full force of monetary policy has yet to be felt in the New Zealand economy and will arrive alongside a pull-back in public spending later this year.

Fruit and vege prices drop to lowest in years

Fresh fruit and vegetables are cheap right now thanks to wonderful growing conditions. Prices have gone done by 25% compared to last year and haven’t been this low in years.

When homeowners should expect the magic 1% cut in mortgage rates

Kiwis have cut back on spending as job fears mount. This has had an impact on house price growth. Tony Alexander says it doesn’t look like this winter is going to be a particularly good one for many people and for the economy overall.

Lack of demand now ‘number one problem for businesses’ – investment manager

Fisher Funds portfolio manager Matt Peek said the weak domestic economy had started to bite companies hard.  “If I think to what I’ve seen recently, there have been multiple business surveys which are now suggesting that as well as the cost inflation [and] high pressures that we’ve had in the last year or so, a lack of demand is an increasing problem and is now the number one problem for businesses.”

NZ may be better off breaking up some big businesses: OECD

Big businesses, including the country’s supermarket duopoly, may need to be broken up to improve competition and boost the country’ lagging productivity, the Organisation for Economic Co-operation and Development has advised.

Big drop in job ads across the country and in all sectors

Job advertisements are drying up, with a 30% drop nationwide in the year ending April, with the provinces among the most impacted.

National progressing changes to NZ Super Fund’s ownership rules

Despite some initial reservations, National will continue legislation introduced by Labour last year allowing the New Zealand Super Fund to buy and manage controlling stakes in businesses and assets.

KiwiSaver investments ride wave of optimism

Optimism in global markets has driven an improvement in the value of KiwiSaver assets in the first quarter of the year.

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