NEWS RELEASE
New Zealand commercial spending reaches US$174 million in 2005, will exceed US$177 million in 2006
Auckland, 24 February 2006 – Visa New Zealand today released its local Commercial Consumption Expenditure (CCE) forecast
for 2006, which projects that New Zealand’s business and government spending will exceed US$177 million this year.
The CCE index provides the global payment industry, including Visa and its 21,000-member banks, an unbiased and
consistent method of monitoring and tracking global business and government expenditure. The first and only standardized
metric of its kind, the global CCE index includes all government purchases of goods and services with the exception of
payroll.
Asia Pacific is the third-largest spending region among the CCE index’s six regions, behind the US projected total of
US$17.4 trillion, and Europe’s predicted 2006 commercial spending level of US$22.1 trillion.
Bruce Mansfield, Executive Vice President Visa Australia and New Zealand, said: “These figures further underpin the
phenomenal speed at which the Asia Pacific economy is growing. In just a year, Asia Pacific has moved from the
fifth-ranked region for expenditure growth to the second highest, mainly fuelled by growth in China. We expect this
growth rate to continue, bringing the region’s total CCE closer to that of Europe.”
Within Asia Pacific, Japan continued to report the biggest CCE spend ($5.4 trillion) followed by China ($3.6 trillion)
and India ($1.9 trillion). China represented the highest rate of year-on-year growth at 16 percent, with India reporting
13 percent.
Top ten countries - Asia Pacific region 2006 CCE $US m
JAPAN 5,414,493
CHINA 3,569,005
INDIA 1,912,569
SOUTH KOREA 1,757,148
AUSTRALIA 1,006,169
TAIWAN 548,456
INDONESIA 381,002
THAILAND 263,635
HONG KONG, CHINA 225,548
MALAYSIA 192,887
Commercial Expenditure Regional Breakdown
Overall 2005 estimates and 2006 forecasts for electronic and paper-based business and government spending within Visa’s
six global regions follows:
Region 2004 Actual 2005 Estimate 2006 Forecast
Europe US$20.1 trillion US$21.1 trillion US$22.1 trillion
United States US$15.1 trillion US$16.3 trillion US$17.4 trillion
Asia Pacific US$14.0 trillion US$15.0 trillion US$16.1 trillion
Central/Eastern Europe, Middle East and Africa US$3.1 trillion US$3.7 trillion US$4.2 trillion
Latin America/Caribbean: US$2.4 trillion US$2.9 trillion US$3.1 trillion
Canada US$1.5 trillion US$1.7 trillion US$1.9 trillion
Total Global CCE US$56.1 trillion US$60.8 trillion US$64.8 trillion
CCE Methodology
Utilizing methodology developed by Visa and launched in 2004, CCE draws upon government data in methods similar to the
Personal Consumption Expenditure (PCE) index, which monitors consumer-related spending. Global CCE is estimated using
four key data elements: the amount of business-to-business purchases to acquire goods and services used in production;
wholesale and retail purchases of final goods; some business capital expenditures; and government spending on goods and
services. Adjustments were made for capitalized expenditures, such as construction and durable defence spending. The
calculations measure transactions at basic prices, which include taxes (less subsidies) on production. The types of
transactions included in CCE can be captured on a variety of Visa products including Visa Corporate, Visa Commerce, Visa
Purchasing, Visa Business and Visa Distribution cards.
Payment trends across Asia Pacific indicate a movement towards electronic-based transactions, providing a significant
opportunity for Visa’s suite of commercial products. Visa Commercial provides payment products with information
management and services designed to help organizations achieve greater efficiency, control and convenience. Recent
examples of government that have experienced the benefits of Visa Commercial programs include the Filipinos and
Taiwanese. The Visa eCard in the Philippines and Purchasing Card in Taiwan have brought significant improvements in the
control and reduction in costs, greater efficiency in monitoring procurement and less paperwork.
ENDS