New Zealand During Challenging Times - 1st December 2023

Written By Aman Narayan

Businesses Under Stress:

  • Many businesses are struggling badly, even worse than during the 2008 financial crisis.

  • Most businesses being shut down owe taxes (like GST and PAYE), which are not optional for businesses to pay.

  • Industries Most Affected:

    • Construction: Especially house-building and small contractors.

    • Forestry: Hit by weak demand from China.

    • Transport: Trucking businesses are struggling because of fewer goods being moved.

    • Food and Retail: Small shops and restaurants (like fish and chip shops) are closing due to fewer customers and less building activity.

  • Current Economic Situation:

    • The recession is deep and ongoing.

    • Help is coming:

      • The Reserve Bank is lowering interest rates to make borrowing cheaper.

      • Higher export prices and a weaker New Zealand dollar are helping some industries.

    • Problems remain:

      • Fewer migrants and less government spending are making things harder, especially in cities.

      • Many businesses may struggle with cash flow over the holiday season.

  • Hope for the Future:

    • Signs of recovery may appear in 2025.

  • Advice for People:

    • If you are struggling, ask for help—it can make things easier.

    • If you are doing okay, take care of yourself, check on your family and friends, and enjoy the holiday season.

Aman Narayan