Articles from ‘elocal magazine’ in ‘Economics’

The Reserve Bank has lifted the Official Cash Rate by another 25 basis points to 2.75 percent, its second consecutive increase. While the Bank believes inflation is moving back towards target and New Zealand’s economic recovery is regaining momentum, it has signalled that interest rates may need to rise further before monetary policy returns to a more neutral setting. eLocal Report: Based on reporting by Gyles Beckford, Economics Correspondent…

New Zealand housing affordability has returned to its long-term average following the extraordinary rise in property prices during the Covid-19 pandemic. New Cotality figures show lower house prices, rising household incomes and easing mortgage rates have substantially improved the position for buyers — although owning a home remains far from cheap. eLocal Report: Based on reporting by RNZ Digital Reporters HERE · House Prices Back to 6.7…

There are finally some brighter signals emerging from the New Zealand economy. Kiwibank's latest First View says inflation expectations are moving back towards the Reserve Bank's target, manufacturing remains in expansion, net migration is positive and annual tourist arrivals have reached their highest level since 2019 although households and younger workers continue to face significant pressure. eLocal Report: Based on Kiwibank Economics'…

More than half a million New Zealanders now owe money to Inland Revenue, with total tax debt climbing from less than $6 billion in 2023 to $9.4 billion by March 2026. But behind those extraordinary numbers lies a bigger question: what happened to the New Zealand economy that left so many households and businesses unable to meet one of their most basic financial obligations? eLocal Report: Based on reporting by Susan Edmunds for RNZ HERE, with…

New Zealand may technically be creating jobs, but it isn't creating enough of them — and younger New Zealanders are bearing much of the cost. Behind the 5.6% unemployment rate lies a deeper problem of weak growth per person, falling purchasing power and an economy that continues to struggle to offer many New Zealanders the wages and opportunities available across the Tasman. eLocal Report: Based on analysis by Kiwibank economists Jarrod Kerr,…

New Zealand's economy may be avoiding the worst for now, but the margin for error is becoming increasingly thin. Kiwibank economists say businesses and households are both operating under significant financial pressure, with slowing demand expected to prevent inflation from becoming entrenched while also limiting economic growth. Report by eLocal · Kiwibank's latest First View economic report paints a picture of an economy balancing on a knife…

Annual inflation climbed to 4.1% in the June quarter, driven largely by soaring fuel prices rather than broad-based domestic demand. Kiwibank says underlying economic activity remains subdued, with cooling rents, weaker consumer spending and resilient household saving habits supporting its expectation that inflation will gradually return to target over the next year. Report by eLocal · New Zealand's latest inflation figures have reinforced the…

The United States will impose a new 12.5 percent tariff on New Zealand goods as part of the Trump administration's revised trade policy. While exporters will feel the immediate impact, the broader question is whether the decision weakens New Zealand's economic resilience, household incomes and future prosperity. Report by eLocal · The United States has confirmed it will impose a 12.5 percent tariff on imports from New Zealand as part of a new…

New inflation figures due this week are expected to show consumer prices rising well above the Reserve Bank's target range. However, Kiwibank economists argue the latest inflation spike reflects temporary fuel price pressures rather than a rapidly overheating economy, even as businesses increasingly signal further price rises. Report by eLocal · Kiwibank Economics has substantially revised its inflation outlook, forecasting annual inflation…

New Zealand's economic recovery remains uneven despite improving manufacturing activity and stronger business confidence. Kiwibank economists believe last week's Official Cash Rate increase risks placing additional pressure on households already struggling with higher borrowing costs. Report by elocal · Based on reporting by Kiwibank Economics. Original report HERE. · OCR decision divides economists · Last week's Monetary Policy Review…