deep cuts to many areas of science, welfare and education, our cousins across
the Tasman are finding things are much rosier.
here’s a summary of the current New Zealand economy:
- Economic growth prospects are suddenly looking stronger in
NZ than they are in Australia. The NZ Treasury
estimates real GDP growth of 4.0% in 2014-15, while Australia is projected
to grow at a more modest 2.5% in 2014-15 according to the recent Budget.
In the March 2014 quarter the number of people
employed in New Zealand increased by 22,000 (0.9 percent) in seasonally
adjusted terms. Over the year to March 2014, the number of people employed
rose 84,000 (3.7 percent) to 2,318,000 people. This is the largest
annual increase in nearly ten years (December 2004 quarter) when the
increase was 90,000.
main contributors to the annual growth in NZ employment were the construction
industry (up 24,400 people, or 14 %) and the professional, scientific,
technical, administration, and support service industry group (up 17,700
people, or 7%).
NZ labour force participation rate rose 0.4 percentage points to 69.3 percent
in the March 2014 quarter. NZ’s labour force
participation rate is now at the highest level
since the series began in 1986 , just surpassing the 69.2 percent seen in the
December 2008 quarter. Over the year, the labour force participation rate
rose 1.4 percentage points. This is also the largest annual increase for the
series. Australia’s labour force participation rate is a much more modest
- NZ’s recent economic outperformance is due to a combination
of factors, not least its growing trade relationship with China (an
annual gain of 51% compared to the previous year, and accounted for around
22% of all exports).
- NZ export growth has been led by a boom in demand for dairy
products from Asia. Over the year to March-2014, milk
powder, butter and cheese exports advanced 31% to $NZ14.9 billion, with
total dairy exports accounting for over 30% of total exports.
- Other components of the NZ economy are also supporting the
relatively rapid rate of economic growth underway .
Housing construction activity has followed higher house prices recorded in
recent years and is growing strongly, while private consumption and
business/public investment are also slated to support positive economic
growth over the medium term.
New Zealand workers into Australia be
about to decline?
the recent Australian Federal Budget would be ones that provide a greater
incentive for Kiwi workers to pack up their life and head across the ditch.