Economics Round Up: New Zealand
Written by Tristan Anwyn
Read the June Edition of Business Review Australia here.
Global economies haven't had the easiest time of late, and New Zealand has been hit along with many others.
In general, the New Zealand economy is looking up, but the picture is still a very mixed one. Time for a look at which sectors are growing and which are not. How is the New Zealand economy doing? And what does the future hold?
Broadly speaking, the economy is doing a little better.
In the December 2012 quarter New Zealand's economy grew by 1.5 per cent. Growth for the whole year was 2.5 per cent. This represents the best year for New Zealand since 2007 and is a hopeful indication of growth.
High unemployment is still a concern though, and the job market is not showing any strong signs of growth just yet. So which markets are currently doing well in New Zealand? And which have suffered a downturn?
Sectors Seeing Growth
Healthcare: This field in New Zealand has been a growing sector lately. Private companies are generally getting involved in upgrading their technology and rolling out nationwide strategies for growing this already popular sector. New Zealand traditionally has some shortages in skilled healthcare workers, making this an interesting area for training and creating jobs for newly-trained workers or those who wish to change career.
Finance: The financial sector in New Zealand is currently enjoying some growth, with KiwiBank recently outdoing its neighbor Australia Bank as the top performing bank, with net profit up more than 200 per cent. More than half of New Zealand's incorporated banks have seen profit increases in the last year. Forecasts show that growth is expected to continue for New Zealand's banks, which bodes well for business lending and financing.
Education: Education in New Zealand has seen steady growth, with more students engaging in higher education, and more young graduates going on to pursue postgraduate studies. The biggest area of growth remains that of international students, with the numbers of international students growing steadily year upon year. This boosts the New Zealand educational sector in terms of both jobs and opportunities for investment.
Sectors Suffering Losses
Manufacturing: New Zealand's manufacturing industry suffered a downturn during the country's recession and is still struggling to recover. Rates of job creation are still low with not much movement in the sector.
Construction: Ever-narrowing profit margins and rising costs have hammered the construction industry in New Zealand in recent years. During the downturn, low skilled jobs were generally the first to go, with the construction industry hard hit. Firms have had to pinch every penny to survive, leading to cut corners, and layoffs.
Retail: Things have been difficult for the retail sector in New Zealand, with many businesses operating at a loss. Shops across the country have found themselves needing to slash prices in order to drum up business. In a faltering economy there is a great need to undercut the competition to secure custom, no matter how low a price the competition is charging.
After suffering some heavy blows during the recession, New Zealand's economy is showing signs of slow but steady growth.
The rate of job creation and wage rises have yet to catch up, but all the signs are there that New Zealand is in recovery and getting stronger daily.
About the Author
Tristan Anwyn is an author who writes on subjects as diverse as health, positive thinking, Steve Wynn, and business.
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