Slow Recovery on the Horizon for NZ Economy
New Zealand's economy is showing signs of improvement, but don't expect a full recovery just yet. According to Andrew Kelleher, executive director of Shaw and Partners, there are small beams of light peeping through, but it's uneven and not for everyone.
Tourists are returning, manufacturing is picking up, and our primary industries are doing well, filtering into South Island cities. The services sector is finally seeing growth, and economic expansion is expected in the third and fourth quarters this year.
The bad news is that improvement is slight and sometimes marginal, with high youth unemployment rates and uncertainty caused by America's erratic leadership and war in the Middle East.
Kelleher notes that a large sector of the population is still struggling with the cost of living, and not everyone will feel the effect of improvement. The South Island is well ahead of the North, with Auckland dragging its feet and small business liquidations at record numbers.