The economy – balancing act
Economic growth has taken a hit but is still likely to remain at around 2 percent per year, according to the BusinessNZ Planning Forecast
for the September 2015 quarter.
BusinessNZ Chief Executive Phil O’Reilly says 2 percent growth is better than in many other countries, but risks still
“Our continued heavy dependence on China and Australia for over a third of our exports, and continuing uncertainty about
China’s investment slowdown are among the risks.
“However the slide in the NZ dollar is helping exporters; and the possibility of further interest rate cuts is positive
Mr O’Reilly says different sectors of the economy are experiencing different fortunes – construction and tourism are
going from strength to strength, and manufacturing and services are still trucking on, while dairy remains downbeat,
despite recent price upturns.
The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators,
including GDP, export volumes, commodity prices and inflation, debt and confidence figures.
The ECI sits at 1 for the June 2015 quarter, up 6 on the previous quarter and down 1 on a year ago.