The BusinessNZ Planning Forecast for the March 2018 quarter shows the New Zealand economy continuing to perform at a satisfactory level, assisted by continued improvement in the global economic outlook.
BusinessNZ Chief Executive Kirk Hope says New Zealand’s terms of trade reached an all-time high in the last quarter, and export prospects were continuing to improve.
New Zealand’s export performance had been aided by recently increased global growth, now forecast to grow 4% over the next year.
“The recent signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will improve New Zealand’s access to more export markets, notably Japan,” Mr Hope said.
But despite an overall positive international outlook, global risks remained, including inflationary pressures, policy uncertainties, trade protectionism and ongoing geopolitical tensions.
At home, the roll-out of the New Zealand Government’s policy agenda raised concerns about the potential for unintended consequences from key legislation such as the Overseas Investment Bill and Employment Relations Amendment Bill.
“It will be important to ensure that key legislation meets its intended target, without harming markets and future business growth,” Mr Hope said.
The BusinessNZ Economic Conditions Index sits at 9 for the March 2018 quarter, up 2 on the last quarter and up 1 on a year ago.
The Economic Conditions Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence.