Weekly Digest – 11 December 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Survey suggests businesses more optimistic about economy
A new business survey gives a clear signal the economy has turned a corner, but a market analyst warns it will not necessarily be smooth sailing. Forsyth Barr’s surveyed businesses about the past three months and found firms are much more optimistic given falling interest rates and increased demand.
Spotlight on New Zealand competition law – Government starts reform process
The New Zealand Government has commenced a process to reform New Zealand’s competition law regime, with a particular focus on merger control. However, in direct contrast to recent Australian reforms, mandatory merger control laws are off the table. The Ministry of Business, Innovation and Employment (MBIE) has released a Consultation Paper aimed at strengthening New Zealand’s competition laws, with a focus on the merger control regime and anti-competitive conduct.
OECD says NZ electricity reform needed
Government should consider breaking up big energy companies to drive down electricity prices and support economic growth, the OECD says in updated report.
Early signs of increase in manufacturers’ activity
Manufacturers may be seeing light at the end of the tunnel with early indications of an increase in economic activity for the first time in two years. The third quarter Unleashed Manufacturing report indicates sales revenue and purchase orders saw average quarter on quarter growth of 6.2 percent, with sales revenues up 10 percent.
Gift cards and trade rebates: Inland Revenue sparks tax debate
Inland Revenue has been churning out consultation items in 2024 and with the year drawing to a close there are still some items out for consultation. One of the more interesting items is the draft Question We’ve Been Asked: What is the income tax treatment of gift cards and products provided as trade rebates or promotions? .
Which industries have been most affected by New Zealand’s economic slowdown?
New Zealand’s economic slowdown has significantly impacted employment across several industries, with businesses adjusting their workforce levels in response to reduced activity and falling demand. Brad Olsen, chief executive and principal economist at Infometrics, highlighted how businesses are responding to these challenges.
How Trump’s trade tariffs will hurt, and help, New Zealand
Few can doubt Donald Trump’s trade intentions once he takes office next January. To evaluate the impacts of the tariffs, Niven Winchester, Professor of Economics at AUT, uses a global model of production and trade that captures interactions between sectors and countries, and consumer demand. The modelling finds tariffs will have minimal aggregate effects on New Zealand, but will significantly affect bilateral trade for some goods.
Debt pressures still a big issue across the economy
New Zealand’s economy appears to be heading in the right direction – but a new Centrix report paints a more challenging picture for indebted consumers and businesses.
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