New Zealand's Economy Expands

In the article “New Zealand Economy Expands”, the message is one of economic recovery. According to statistics, production-based GDP increased by eight-tenths of a percent in a single economic quarter. The article credits “strong manufacturing activity” for the better than expected economic growth. It was stated that activity in the manufacturing industry (food, beverage and tobacco) rose 4.5%. An increase in demand led to the need for replenishment of manufacturing inventories.

While the article illustrates several positive marks for New Zealand’s economy, it also stresses that economic difficulties are not yet in the past. Despite stronger than expected activity, it should be noted that manufacturing numbers are still 16.5% lower than September 2005 levels. According to the article’s statistics, after a 3% rise in the previous quarter, primary industry activity fell 1.3% citing declines in fishing, forestry and mining. The New Zealand dollar remained steady at $0.70 U.S.

New Zealand's Tourism industry

Fundamental to the survival of any institution, organization or nation is money. Money is the fuel on which any industrialized entity is propelled forward. Without sufficient monetary funding, these entities would stall and be rendered useless and vulnerable to collapse. The generation of money comes from the presence of people and commerce. For the purposes of this blog, that source of commerce is tourism in New Zealand.

According to the article, New Zealand’s tourism industry contributes $18.6 billion to its economy annually, which accounts for almost a tenth of New Zealand’s GDP. This money allows for the development and maintenance of New Zealand’s infrastructure. A surplus of funds allows for the creation of jobs which, in turn, eases pressures on various government assistance programs. The outlook for the future is good in terms of the reliability of tourism dollars. According to the article, international tourism has doubled since 1993, and growth is expected to continue.
http://www.nztourismstrategy.com/tourismnz.htm

The Declining Dollar: New Zealand's Economic Woes Continue

This article deals with topics related to the attempts to stimulate the global economy. According to the author, the strength of New Zealand’s currency has fallen below its 16 counterparts. A myriad of factors have hampered economic recovery efforts. Some of these issues include high home-loan and business interest rates, and a lack of significant growth in the employment sector.

As with many reports on the current state of the global economy, the facts contained within this article are sobering. The main problem addressed in this article and any apparent solutions seem to be paradoxical: To be globally competitive in business and otherwise, a nation’s currency must keep pace in reference to value with the rest of the world. However, in order for a nation’s currency to retain value, a nation needs to be globally competitive.
http://www.businessweek.com/news/2010-03-11/n-z-dollar-falls-on-rates-australia-s-trades-near-7-week-high.html

New Zealand Housing and Unemployment Trends

According to this article, the housing and economic problems felt so painfully here in the U.S. have made their way across the globe to New Zealand. Property sales have fallen and, unfortunately, this trend is forecast to continue. Furthermore, the article states that the amount of time that houses remain on the market has increased to 33 days. Not surprisingly, the slump in property sales is directly correlated to a rise in unemployment. With the increase in unemployment, banks are reluctant to approve mortgages. In situations where loans are approved, interest rates have risen significantly.

As I stated above, I think this article gives an accurate depiction of not only the economic climate in New Zealand, but the general economic environment worldwide. The article explains that the housing slump has, apparently, not affected Auckland, but it doesn’t explain why. One explanation might be that Auckland is a more affluent area that would, therefore, be less impacted by financial difficulties.
http://www.nuwireinvestor.com/articles/new-zealands-real-estate-market-expected-to-slow-in-2010-54249.aspx