Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Is the economy responding to interest rate cuts?
There is a general expectation that cuts in interest rates will eventually pull the economy out of recession. The Official Cash Rate (OCR) has been slashed 125bps since August. It’s early days, but folk are starting to ask if we’re seeing a response. Mike Jones, Chief Economist BNZ checks in on some of the economy’s more interest rate-sensitive sectors.
Stay ahead of the curve with a cash reserve
As the year-end approaches, many small businesses in New Zealand are dealing with tough financial conditions. In this climate, a cash reserve becomes a business lifesaver, providing the buffer needed to manage unexpected expenses, handle cash flow dips, and stay resilient through seasonal ups and downs.
Kiwis’ economic fortunes set to lift after shaky start to 2025
Businesses and households should brace for a bumpy ride next year as the economy emerges from a period of high interest rates, but better times are on the horizon, according to Kiwibank. The bank is forecasting a year of two halves for 2025 – the first being bumpy with glimpses of growth, and an uplift in activity in the second half.
NZ Economy: Holding Pattern
The BusinessNZ Planning Forecast for the December quarter shows only modest growth on the cards for New Zealand’s economy in 2025. BusinessNZ Director of Advocacy Catherine Beard says after a tough year in business, there are still reasons to be optimistic.
How NZ businesses can find offshore success
With the growth of NZ’s technology industry, more Kiwi businesses are choosing to move overseas earlier in their life cycle. BNZ’s Tim Wixon explains why offshore success is valuable for the country, and what companies should bear in mind as they head into new markets
Consultation on proposed changes to foreign investment fund rules for immigrating individuals
Inland Revenue released a consultation document on proposed changes to the existing foreign investment fund (FIF) rules for individuals immigrating to New Zealand, aimed at simplifying the tax obligations for new or returning residents and making the rules fair and equitable.
Kāinga Ora decision a ‘KO’ blow to the wool industry
Federated Farmers says Kāinga Ora’s decision to categorically rule out using woollen carpets in social housing is a slap in the face for struggling Kiwi sheep farmers. Kāinga Ora, a Crown entity, has released a request for proposal for companies to provide carpet and underlay for its state homes – but it specifies it wants nylon carpet only.
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