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

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