Economic Insights Breakfast 2024

While there is hope of relief on the horizon with interest rate cuts forecast to begin from late 2024/early 2025, there is currently a lot of uncertainty in a currently under-performing New Zealand economy.

Tony felt we are currently in the maelstrom of a number of factors which have led to a softening in the economy and business and consumer confidence.

• The full effects of the Reserve Bank's tightening of monetary policy from late 2022 onwards are now coming home to roost in the form of high interest rates and increased unemployment figures.
• Consumer spending habits are down as a hangover of the post-Covid spending splurge many kiwis undertook a couple of years ago. After being cooped up in isolation we reacted by spending our savings on travel, house renovations and new toys, and as a result we don't feel the need to spend to replicate or replace these items in the near future. This has led to pressures in the retail environment.