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

History of Currency

Hey everyone, this week post is about the history of New Zealand currency system. Between the 1840s and the 1850s there was an extreme coin shortage in New Zealand. The reason for this was because the first governor of New Zealand, Captain William Hobson, allowed British standard for gold, silver, and bronze to circulate with foreign bills in New Zealand. This caused the value of the gold standard to become lower. In 1933 the New Zealand Numismatic Society addressed this problem of the shortage and the smuggling of these coins into New Zealand. The New Zealand Numismatic Society said the country should switch to a decimal coin system.
Some coins introduced were the half-coin and florin. These days New Zealand economy uses coins and dollars. Since previous years there have been many acts adding and changing the currency. One interesting fact is one New Zealand dollar is about 70 cent compared to the United States of America. Hope this post was interesting.

Hold on to your stars

In today’s potent atmosphere of financial uncertainty, many companies around the world are changing the way in which they conduct business especially in New Zealand. As revenues decrease, so too, does the ability for businesses to keep staffing at optimum levels. Furthermore, affected businesses can no longer afford to offer services (i.e. training, career development, etc.) that were once offered in more promising times.
However, it is important to remember the value of keeping the employee/employer relationship strong. In New Zealand, this can be attained by striving to create a fun and, when appropriate, light-hearted atmosphere. And, although it may seem overly-obvious, showing appreciation for the role of each employee is of the utmost importance. Ensuring that every employee knows that he/she is a valued member of the company, will encourage those who were laid –off during difficult times, to return to the company when economic conditions improve.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10627441

New Zealnd

In this article, the author details the effects that the harsh economic environment has on New Zealand’s educational institutions. The point is made that a failure to increase funding to the country’s educational institutions would create a myriad of issues that would be detrimental to these institutions, and thus, the economy. Among these issues is the failure to keep wages competitive with the rest of the world. Obviously, without competitive salaries, these institutions risk losing faculty and staff to other universities. Furthermore, without funding, physical repairs to an institution’s aging buildings and outdated technology would ultimately lead to its failure.
Overall, I agree with the Vice-chancellor’s plea for help. Funding educational institutions is a wise decision regardless of geographic location. Not only does this extra money give hope for our future by providing quality education to tomorrow’s leaders, but it also provides an opportunity for growth. This growth comes in the form of jobs for the unemployed. Also, this growth comes from an increased population in a community with a flourishing educational institution.

New Zealand Economy

The title of the article is "New Zealand Economy Sliding into Recession." In this article economists already in a recession. The reasons for this is because of their housing market and the global-market problems. The housing mortgages are increasing at a every fast pace. For instance, interests cost on a two-year mortgage has gone up by more than fourteen percent in the pass year! The reason for this dramatic change in interest is because the Reserve Bank is trying to fight inflation. Unfortunately, the housing mortgages are not the only problem that New Zealand is facing. The food prices and gasoline prices are raising at a very fast pace also. Also, many businesses are closing and many of people are losing their jobs. For example, fourteen finance companies have gone under in the past couple years.
In my opinion, New Zealand needs to do something fast before its too late. The housing market is crashing faster than the United States did. When reading this article, I found it very shocking that the Prime Minister Helen Clark has not done anything to fix the crisis, let alone address that the country is in a recession. New Zealand has to find a way for people to keep their jobs before food prices and other good prices hit the ceiling. The link for this article is

Introduction

Hello, my name is Anthony Ritz and I am in Dr. Fleury Macroeconomics class. The country I chose was New Zealand. New Zealand is located in the South Pacific near Australia. New Zealand's government is known as a Parliamentary democracy. New Zealand is known for a market economy and is based on international trade. An interesting fact on New Zealand's economy is they are known as one of the most business-friendly country in the world according to the World Bank. New Zealand does most their trading with Australia, the European Union, the United States, China and Japan. Their exports are tourism destination, dairy products, meat, wood and wood products, fish, and machinery. Despite, having a good economy during the current global market crisis; New Zealand has not always been a market economy. Before 1984, New Zealand was an agrarian economy that was dependent on England. Since the change, New Zealand has had the lowest inflation percentage when compared to other industrial countries. Below are some statistics and facts on New Zealand's economy.
Economy of New Zealand
Currency 1 New Zealand Dollar (NZD$) = 100 cents
Fiscal year 1 April - 31 March
Trade organisations APEC, WTO and OECD
Statistics
GDP $128.141 billion (2007 est.)
GDP growth 3.0% (2007 est.)
GDP per capita $30,234 (2007 est.)
GDP by sector agriculture (4.6%), industry (27.4%), services (68%) (2004 est.)
Inflation (CPI) 3.9% (2005 est.)
Population
below poverty line n/a
Labour force 2.17 million (2009 est.)
Labour force
by occupation agriculture (10%), industry (25%), services (65%) (1995 est.)
Unemployment 6% (2009 est.)
Main industries Food processing, Textiles, Machinery and Transportation equipment, Finance, Tourism (in NZ), Mining
External
Exports $29.2 billion (2005)
Export goods tourism destination, dairy products, meat, wood and wood products, fish, machinery
Main export partners Australia 19.6%, U.S. 14.3%, Japan 11.4%, the People's Republic of China 6.3%, UK 5.1% (2004)
Imports $ 35.8 billion (2005)
Import goods machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics
Main import partners Australia 28.6%, Japan 10.7%, U.S. 10%, the People's Republic of China 6.6%, Germany 4.2%, Singapore 4.1% (2004)
Public finances
Public debt $42.84 billion (2005 est.)
Revenues $38.29 billion (2004)
Expenses $36.12 billion (2004)
Economic aid donor: $99.7 million (FY99/00)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars