Back on track: Auckland's rail system could stimulate the economy

According to this article, business leaders in Auckland are lobbying to locally manufacture electric trains for New Zealand’s rail system. A recently released report suggests that assembling 70 percent of the trains locally could contribute as much as a quarter of a billion dollars to the country’s GDP. Furthermore, it would allow for the creation of almost 1300 jobs. The creation of these new jobs would only serve to enhance the currently slumping economic conditions. This would be done by stimulating local spending and, thus, improving currently lackluster sectors of New Zealand’s economy such as the housing industry.

New Zealand’s government would lend a half-billion dollars to KiwiRail. This money would be used to manufacture up to 114 railcars by a 2013 deadline. Inevitably, some of the initial loan would be relocated to locations overseas. However, despite the importation of specific components, it is estimated that 260 million dollars would be absorbed directly into the country’s economy.
http://www.nzherald.co.nz/economy/news/article.cfm?c_id=34&objectid=10642374

Sluggish Immigration Growth

According to an article written in Bloomberg Businessweek, New Zealand’s immigration growth has slowed for a second straight month. The author states that this is an indicator that New Zealand is not recovering from the economic recession as quickly as first expected. The number of permanent migrant arrivals was 20,973 which is a difference of 645 people from February numbers. Less immigrants combined with tight credit is leading to a lack of domestic demand. Furthermore, unemployment has increased to a 10-year high of 7.3%.

New Zealand’s dollar is also down, with it being equivalent to approximately $.70 U.S. However, short-term arrivals are up 1.1%. Unadjusted arrivals also increased by 7.4% which, according to the article, may have something to do with school vacations and the Easter break in the academic calendar. Furthermore, due to the fact that tourism accounts for 10% of New Zealand’s economy, a heavy emphasis has been put on New Zealand as a tourist destination. The emphasis put on tourism has helped somewhat in keeping people, and thus money, flowing into the country’s economy.

http://www.businessweek.com/news/2010-04-22/new-zealand-annual-immigration-fell-a-second-month-in-march.html

Is New Zealand's Economy Getting Better?

According to the Wall Street Journal's article, economists believe that New Zealand's economy is on the rise for the for the first time this year. After having one of the worst quarters ever the economy is pulling itself out of their recession. According to the article, New Zealand has never been five straight quarters of no growth this long since the 1970's where the economic problems came from the oil shock. The Gross Domestic Product has grown 0.8% in the last quarter since December 31. According to National Accounts manager Rachael Milicich the growth is coming from strong manufacturing from December 2009. So this shows hard work does pay off in the long run
The economists believe the boost in gross domestic product is coming from food, beverage and tobacco manufacturing. Also, the economy is suppose to be still growing by the end of the quarter. However, the only reason the gross domestic product is increasing slowing is because of the fishing and mining industry. Overall though the economy is doing much better because their is an increase in supply and demand. This is a good sign showing that at least some countries are pulling through these rough times.

Economic Uncertainty

The Global recession has decimated many parts of New Zealand’s economy. It has put people out of jobs and, many cases out of their homes as well. According to this article, some of the recent statistics suggest a recovery in New Zealand’s economic situation. Others, however, still show the grip of the recession holding tightly.

According to the article, production GDP rose 0.8% in December thanks, in large part, to manufacturing. Business confidence is also on the rise. Conversely, however, is a reported increase in unemployment, which is currently at a 10-year high of 7.3%. This, combined with increased household spending, is causing skepticism in regards to economic recovery. According to New Zealand’s treasury department, the countries GPD remains 2.1% below its peak, which occurred two years ago.
http://www.stuff.co.nz/business/market-data/3551540/Mixed-messages-in-data-Treasury

The answer is blowing in the wind

The Earth on which we all reside, is a large and unfathomably complex place. Gravity, Oxygen, water…all play a vital role in keeping our planet running smoothly. As this article explains, wind plays an increasingly important role in how efficiently the economic world functions by creating another crucial element: Energy. According to the New Zealand Wind Energy Association, wind energy accounted for 4.9% of all energy in the December quarter of 2009. This number is expected to increase to 20%. This increase in electricity will have a profound effect on New Zealand’s economy.
With free and reliable energy from a renewable resource, wind energy stands to lower the costs of energy bills to customers both nationally and worldwide. In this one area alone, one can only imagine how much money would be saved. Furthermore, wind energy creates virtually no pollution which saves the government from having to spend millions of dollars cleaning up rivers, lakes and streams from other less environmentally-friendly energy sources (i.e. nuclear, coal, etc.). Also, the utilization of wind energy would help the economy with the creation of many jobs. Some of the industries that would experience employment expansion as a result of wind energy would be Turbine suppliers, construction and engineering companies, and consultancy groups.
http://www.scoop.co.nz/stories/BU1003/S00773.htm

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