Stephen Collie: Overview of the New Zealand Economy

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New Zealand Economy

“New Zealand, or Aotearoa has an open economy that works on free market principles”, says Stephen Collie. In the last three decades our economy has gone from being virtually over-regulated in the OECD to one of the least regulated, most free-market based economies.

Fertile soil and excellent growing conditions combined with advanced farming methods and sophisticated agricultural technology provide the ideal environment for pastoral, forestry and horticulture activities. Various primary commodities account for around half of all goods exports and New Zealand is one of the top five dairy exporters in the world.

Complementing primary production are sizeable manufacturing and service sectors and growing high-tech capabilities. Tourism, film production, and winemaking are also significant.

New Zealand EconomyStephen Collie notes: “Our country is one of the few bright spots among industrialized economies”. Loose monetary conditions, gains in real disposable income and solid growth in the construction, retail and tourism sectors have continued despite weak external demand, putting the economy on a solid footing. The unemployment rate dropped to a multi-year low in 2016 Q3 and although business confidence dipped in October, it logged the second highest reading this year, pointing to a still-solid expansion.

The NZ dairy export sector received some welcoming news in October as milk prices have gone up significantly since the end of Q3 and will contribute to easing the financial strain afflicting the industry. However, a massive earthquake struck the South Island of New Zealand on 14 November near Hanmer Springs, leaving a trail of destruction and billions of dollars of damage, according to Prime Minister John Key.

Stephen Collie: “We have a very export-driven competitive economy with exports accounting for about 30% of Gross-Domestic-Product”.

We also have a low-inflation environment, with monetary policy managed by the Reserve Bank, our independent central bank that is charged with maintaining price stability, and our exchange rate is one of long-stading flexibility, and there are no exchange controls or restrictions on bringing in or repatriating funds.

Our country is ranked by the World Bank as the easiest place in the world to start a business (2015) and the world’s second easiest country to do business in generally, and the Heritage Foundation rated NZ the world’s third freest economy in its 2015 IEF, just behind Singapore and Hong Kong.

“There are few restrictions on establishing, owning and operating a business here”, Stephen Collie says. In fact, by using the government’s online portals the official paperwork to set up a business can be completed in a matter of hours. New Zealand came in third in Forbes’ ‘Best Country for Business’ report, (December 2014) just behind Denmark and Hong Kong.

Forbes commented that “Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes and broadened and deepened the technological capabilities of the industrial sector.”

Stephen Collie notes that New Zealand’s economic growth has been faster than most other developed countries in recent years, the OECD commented in 2015 that: “inflation and inflation expectations are well anchored… Strong fiscal monetary policy frameworks and a healthy financial sector have yielded macroeconomic stability, underpinning growth. Employment is high, in large part thanks to flexible labour markets and ample immigration, business investment is robust and households and firms are optimistic.”

Between 2000 and 2007, the New Zealand economy expanded by an average of 3.5% each year as private consumption and residential investment grew strongly. Annual inflation averaged 2.6%, inside the Reserve Bank of New Zealand’s 1% to 3% target range, while the current account deficit averaged 5.5% of GDP.

Like most OECD countries, New Zealand’s economy experienced an economic slow-down following the global financial crisis in September 2008. As in other advanced economies, business and consumer confidence declined. Unlike most OECD countries however, after a 2% decline in 2009, the economy pulled out of recession. It achieved 1.7% growth in 2010, 2% in 2011 and 3% in 2012. That compared with 0.3% growth in the UK and negative 0.9% in the euro area; 0.4% in Japan; 1.1% in Canada; and 1.6% in the USA.New Zealand Dairy Exports

Stephen Collie says: “Recovery was led mainly by exports, while relatively strong Government accounts and a well-capitalised banking system provided a stable base for the economy. These positives were supported by the continued boost to GDP from the rebuilding of Christchurch after earthquakes there in 2010 and 2011”.

Recent Economic Performance

By December 2014, annual growth had risen to 3.3%, the fastest rate of expansion in six years and, according the New Zealand Treasury, one of the strongest performances in the OECD

Growth for 2015 is expected to be around 3%, supported by net migration flows, labour income growth, and construction activity. It is expected to fall back for 2016 and 2017, largely due to deteriorating terms of trade, particularly for our dairy exports. This factor has been somewhat offset however by falling oil prices and a lower exchange rate which is helping exporters. From 2018, growth is forecast to pick up again.

Stock market performance

The NZX, The New Zealand stock market has recovered strongly from the global financial crisis, up 121% from 1 April 2009 to 30 June 2015. Despite key economic drivers coming off their highs, steady economic growth and a weaker currency is expected to underpin corporate earnings and securities valuations in the medium term.

This article is inspired by a similar article on www.newzealandnow.govt.nz

About Stephen Collie:

New Zealand Business Ready For Aussie Workers

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The New Zealand vs. Australia tide has now fully turned.

New Zealand Business - The HeraldStephen Collie: “Besides from practically claiming the Bledisloe Cup as its very own, New Zealand can present a healthier economic climate than Australia, a financial budget surplus for the current year and a decreased unemployment level. And today the land of the long white cloud desires Aussie laborers”.

A number of New Zealand job expos have been hosted throughout Australia to attempt to entice many of the 500,000 Kiwi expats located in Australia back home as well as any Australians who would like employment to fill up an anticipated 50,000 job vacancies throughout the next two years.

“Unemployment is going down and we’re beginning to see skills shortages,”the New Zealand Employment Minister told ABC radio recently. New Zealand organizations and businesses seeking 2500 trades-people spanning a range of sectors – IT and design, engineering, construction and manufacturing. The Minister also said somewhere between 1600 and 1700 people came at a 2 day job expo in Perth recently. “About 60 per cent were being New Zealanders considering going home and the the rest were Aussies or folks who had recently relocated to Australia”, says Stephen Collie.

“It’s an instance of focusing on both expat Kiwis to come back … and Australians as well,” the Minister said. And many folks seem to be addressing the call. October was the best month since late 1993 in which there was net migration into New Zealand from Australia. “We anticipate that to go on. That’s really since the New Zealand economy continues to be getting steadily stronger,” the Minister said.

While Australia was in much better shape soon after the worldwide financial crisis, it had been a lot harder in New Zealand, complicated by the Canterbury earthquakes. “As a consequence of that our businesses have in all probability strengthened by themselves and got their selves more match fit,” he said. Blossoming exports have already been part of New Zealand’s triumph story, fueled by its 2008 free trade deal with China which has been a benefit for its dairy sector. The Minister isn’t worried that Australia has recently signed its own FTA with China, saying it really is welcome because there had been a limit to what New Zealand could do by itself.

The jobs fair moves on to Melbourne and Brisbane early in 2015. “Locals are invited to visit the expo and find out about job opportunities”, says Stephen Collie, NZ based entrepreneur and business owner and operator.

 

 

Stephen Collie believes small enterprise will have a big impact on the economy.

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Stephen Collie

Should you ask Stephen Collie, the future looks vibrant for New Zealand’s overall economy, as a consequence of a surge in quite a few sectors, for example manufacturing. Collie has devoted a great deal of his life to enhancing the enterprise his parents created to succeed.

Stephen Collie’ s father created a construction business soon after coming back home from combating in 2nd World War. Like many family-owned small businesses, the company had very humble beginnings. At the beginning, Steve Collie’s dad had only a single truck. Nowadays, Collie himself is a shareholder within the enterprise and serves as the business manager for its subsidiary, a shipping company. Much like the construction business, the shipping venture began with a single vehicle – one small tugboat. The business today is the owner and operates a number of barges, along with its own workshop and dock.

Stephen CollieThrough the years, Stephen Collie has demonstrated that being seriously active in the day-to-day activities associated with an organization is critical for its prosperity. At some stage, he worked in pretty much every job position available within the company. Getting engaged in the business and dealing in functions for instance barge mechanic has demonstrated him what must be done to keep the business running. Also crucial is keeping a small venture way of thinking while being competitive on a major scale.

The Fundamentals of Dredging

The most significant capabilities of a shipping company is dredging. Dredging is just the excretion of sand and sediment out from the ocean or river floor. There are lots of reasons for carrying out dredging. When it comes to shipping, the barges acquire sand for the concrete business to use for making its product.

Stephen Collie says that his company appears to have been able to score well in this field simply because it learned from the errors of others. The business witnessed the actions of some other barge or shipping companies, then altered them to generate the greatest results. The shipping business owns its very own related equipment and land, while many other companies rent. The company has to some extent learned the best places to collect the sand by studying the endeavors of others.

Dredging has effectiveness beyond concrete, Collie highlights. It’s also good for the health of the water and the coastline around it. Devoid of frequent removal of sand and silt, certain areas of the water would probably become too shallow for boats for getting through. Shallow waters can drastically restrict trade in NZ, as merchandise is not able to get in or out of the country’s ports.

The Bottom Line

There’s often the question of what to do with the sand that’s dredged up. Concrete is one specific solution. It may also be utilized to repair broken down or drastically changed beaches and to improve the recreational appeal and tourist economy of a region. Preserving healthy and balanced, functional beaches is key to the continuing success of a coastal town. The beach not alone provides people with a place to relax and play. It also safe guards the surrounding area from serious damages after stormy weather, Stephen Collie notes.

Stephen Collie