Made with funding from NZ On Air. Dovish RBA adds to weaker AUD profile, US jobless claims jump; benefit qualifications expire; Canada in a housing boom; China inflation retreats; India tries new infrastructure spending; UST 10y at 0.73%; oil and gold unchanged; NZ$1 = 65.9 USc; TWI-5 = 69.4, Rabobank points out that significant diversification of our dairy trade away from China will be increasingly possible as other ASEAN countries face a growing dairy deficit - and New Zealand supply has some advantages, 1 News-Colmar Brunton Poll: Labour would need Greens' support to govern; Support for Greens' climbs to 8%, Economics forecaster Infometrics says renewed house price rises are a side-effect of the Reserve Bank's efforts to stimulate the economy, A day on the campaign trail: Jacinda Ardern sees silver lining of regional house price growth; Judith Collins rubbishes underwriting property development, A review of things you need to know before you go home on Thursday; more retail rates trimmed, Fonterra ups milk price, Govt bonds popular, documenting climate change, swaps under pressure, NZD stable, & more, NZ Govt Bond Tender #743; Tender Date 15 Oct 2020, Diane Coyle urges researchers to investigate how policy coodination can boost growth and living standards, Legislation has been passed to speed up housing developments and spread the cost of infrastructure, but developers aren't (yet) queueing up to use it, Koichi Hamada offers three pieces of economic-policy advice to Japan's new prime minister, Yoshihide Suga, RBNZ deputy governor and manager for financial stability Geoff Bascand airs concerns about open banking, sounds lukewarm on the prospect of regulating merchant service fees, Allan Barber reports that for the rural sector, 'good intentions' by most parties are backed up either thin, superficial, or counterproductive policy ideas, few of which will appeal to farmers, or achieve those 'good intentions', Fonterra's now picking a milk price for the current season in a higher range of $6.30 to $7.30 per kilogram of milk solids, giving a 'midpoint' forecast of $6.80, Much of the huge financial stimulus being pumped into the economy seems as though it is being pumped into the housing market. An ASB economist says increase in domestic spend can't fill void of tourists over summer. New Zealand’s economy could contract by as much as 10%, the jobless rate will jump to levels not seen in almost 30 years and prices are likely to start falling. Kiwis are making the most of high-end meat deals after Covid-19 upset the export market. US jobless claims rise. Listener: Leading economists look at the best way forward during a global pandemic. Lunch with the FT: The Bulgarian economist on spending in a pandemic — and austerity. Finance Minister Grant Robertson said the lockdown was necessary to save thousands of lives and get on top of the virus so the economy could bounce back faster. The International Monetary Fund is anticipating it big drop in global growth. "Success for me is saving people's lives, supporting and saving people's businesses, coming out the other side (of the crisis) faster, quicker and with more activity," she told reporters. She said New Zealand "compares very unfavourably" with neighbouring Australia, which recorded an economic contraction of seven percent in the June quarter after adopting a more flexible approach to lockdowns and border controls. ANZâs Process Blue is a registered Trade Mark of ANZ. ", "This shift lower is not discouraging deposit inflows into banks - in fact it may be encouraging them. Australia Budget 2020: Winners and losers revealed, Aussie Budget: Tax cuts for the rich slammed, Election 2020: Parties' main policies at a glance, Election 2020: What's the plan? Businesses are optimistic about the future for the first time since Covid-19 emerged. Yeah, right, Valley of debt: Daunting hurdles facing election winner, Brian Fallow: Spot the difference in parties' plans, 'Remarkable' return of business confidence - ANZ, Reserve Bank outlines plans for powerful new tool to push rates lower, Trump tweets on stimulus keep market spinning, Wilson Parking announces free parking on weekends in an attempt to help economy. Ardern rejected opposition accusations that the tough measures had pushed the economy "off a cliff", saying the restrictions helped contain the virus, which allowed business to resume far earlier than in many other countries. He said the fall in GDP was better than initial Treasury forecasts of a 16% contraction. Not this time. Statistics New Zealand released figures Thursday showing GDP had fallen far more than ever previously recorded and signaling the nation of 5 million people is officially in recession for the first time in 11 years. Edible bugs are coming to a plate near you. The 12.2 percent contraction in April-June was "by far the largest" since records began, national data agency Stats NZ said, with the country put into a strict lockdown for almost two months and the country's borders closed. Kiwis are making the most of high-end meat deals after Covid-19 upset the export market. On an annual basis, GDP fell by 2%. Infrastructure, jobs and housing top the list. Made with funding from NZ On Air. Certainty is always hard to find. New Zealand is unique but isn't everywhere? New Zealand has entered a recession with the economy contracting 12.2% in the June quarter. The Australian Budget benefits some more than others. It is not unusual for Government parties to have fewer policies than Oppositions. Don’t kid yourself that things … Ben Kepes: On wealth taxes and pitchforks, What business wants from the next government - and what it expects, ANZ upgrades economic forecasts on house price surge, 'Economic management taboos have been swept away', Grim IMF forecast: 4.4 per cent drop in global growth for 2020, IMF chief Kristalina Georgieva: 'The fund needs to have a big bazooka', Local Focus: Rangitīkei candidates state their case to lead us out of the doldrums, Local Focus: Rangitīkei candidates on which economy we should emulate, Liam Dann: The biggest uncertainty of this election. "Businesses and households have clearly adapted to trading in a world with limited face-to-face contract," he said. New Zealand is unique but isn't everywhere? David Hargreaves says the Reserve Bank has some serious thinking to do ahead of its last two major set piece events of the year, Cautious tone overhangs US equity market. As a result, net government debt is expected to shoot up from just over 20% of GDP before the pandemic to 54% of GDP by 2023. Certainty is always hard to find. Wilson Parking received almost $3 million in wage subsidies. The US market responded almost immediately to the news out of the White House. It has reported just over 1,800 cases and 25 deaths. For archived articles or any information on how ANZ can support your business, email firstname.lastname@example.org. New Zealand plunged into recession for the first time in a decade Thursday, as data confirmed a record-breaking economic collapse that forced Prime Minister Jacinda Ardern to defend her pandemic response ahead of next month's general election. Opinion: I find experts generally more useful than populists in a tight situation. The Australian Budget benefits some more than others. (PDF 312kB), NZ Forecast Update: Current account outlook (PDF 316kB), Irrigation opportunities - Achieving more with less (PDF 264kB), NZ Forecast Update - Winter premiums squeezed for lamb and beef (PDF 260kB), RBNZ Monetary Policy Review - Keep calm and carry on (PDF 208kB), NZ GDP - Disruption in the data, but not to our view (PDF 160kB), RBNZ OCR Preview - In the 0.25 master's store (PDF 188kB), NZ Forecast Update: Farmgate milk price (PDF 264kB), NZ Forecast Update: Weak migration outlook (PDF 312kB), NZ Forecast Update and Q1 GDP Preview (PDF 288kB), Where to now with Quantitative Easing? Kate MacNamara: What if the Covid-19 vaccine never comes? AAP FactCheck found the New Zealand economy has not lost $21 billion from tourism and international students. “The focus must now turn to the recovery. "There is no way that any political party could claim that there would not have been a recession in New Zealand during this period," he said. A booming housing market is adding confidence to the economy, says ANZ. Businesses are optimistic about the future for the first time since Covid-19 emerged. Wilson Parking received almost $3 million in wage subsidies. Learn about managing your money online, in branch and by phone, Different ways you can spend your money and make payments, From small business to farm business to big business, weâve got you covered, Things you can do to keep your money safe and secure, An A-Z Review is one of the great ways we can help you stay on top of your money, Learn to manage your money better and get your finances on track. The opposition National Party said the figures showed a change of government was needed because Ardern's administration could not properly manage the economy or the pandemic response. Kiwibank chief economist Jarrod Kerr said the figures were unprecedented. Michael Cullen: Resource Management Act gone by Christmas? You would normally expect National to be more fiscally prudent. (PDF 240kB), QSBO: In need of a caffeine hit (PDF 184kB). Economists said the decline will likely be followed by a record increase in economic activity during the third quarter as many businesses get back to work. New Zealand’s government has pumped billions of dollars into the economy to sustain activity and minimize unemployment. Collins has offered to act as a debt collector to force big business to cough up. As well as one-off events, the reports regularly include information on labour market conditions, gross domestic product, balance of payments, official cash rate changes, and the Government's finances. All rights reserved. Find out where the major political parties stand on the issues that matter to you. New Zealand isn’t out of the woods yet, and the work to get the economy back on track is only beginning. The war of the economic plans continues, with National now pointing the finger at Labour. Please become a Supporter today, or turn off your adblocker. It is the 51st-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 67th-largest in the world when measured by purchasing power parity (PPP). Made with funding from NZ On Air. Opinion: I find experts generally more useful than populists in a tight situation. All eyes will be Australian treasurer Josh Frydenberg this week. The economy of New Zealand is a highly developed free-market economy. We asked economists. It was traumatic," he said. Donald Trump has been tweeting incessantly since his release from hospital. What are the big uncertainties this election will bring for business and will they matter? Critics say the controversial tax cuts will simply reward the rich. 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