tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, August 10th, 1:55PM

Blogs

rss
Latest Headlines

The one thing NZ is lacking

[OPINION] The head of think tank, The NZ Initiative, gives his view on the state of the Australian and New Zealand economies.

Tuesday, February 25th 2014, 12:45PM

by Oliver Hartwich

The Kiwis hardly needed cheering up from me. New Zealand is performing so strongly that some analysts have started referring to us as the “rock star” of the world economy. For the Australians, it was a different story. Not only is their mining boom levelling out, they also find themselves outperformed by us, which probably hurts even more.However, in my view there are enough reasons for optimism on both sides of the Tasman. Both Australia and New Zealand are ideally placed to benefit from the changes in the world economy.

The mega story of the 21st century is the rise of the Asian middle class. Over the next 25 years, the global middle class will grow by about 2 billion people. This rise is almost entirely driven by Asian countries and it will drive demand for Australian and New Zealand exports.

The Australians noticed this surging demand earlier than New Zealand because their primary exports are coal, iron ore and other minerals – hard commodities that are required early on in the process of industrialisation. New Zealand’s soft commodities from our agricultural sector are in greater demand as Asia’s economies shift their focus from investment to consumption. This shift is also evident in a slight dip in Australia’s terms-of-trade while New Zealand is currently seeing terms-of-trade at a 40-year high.

Both Australia and New Zealand will continue to enjoy prices for their exports that are much above their historical averages. Entering free trade agreements with Asian countries will further boost export income, as did the free trade agreement New Zealand signed with China in 2008. It has since more than quadrupled our exports to China as a percentage of GDP.

We are also well placed to take part in Asia’s boom for structural and domestic reasons. No matter which factors you measure – economic freedom, freedom from corruption, economic competitiveness – Australia and New Zealand typically appear in the global top 20.

With our sound institutions and our growing integration into the Asia-Pacific economic region, if any countries are able to grow, they are New Zealand and Australia.

However, there is one thing we are lacking, and that is self-awareness. We often forget how lucky we are. And we sometimes forget that even the best conditions should never make us complacent but encourage us to become better still.

Dr Oliver Hartwich is the Executive Director at think-tank, The NZ Initiative.

« Hughes prepares to saddle upHughes' advice to new FMA CEO Rob Everett »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 6.35 5.25 5.45 5.99
ANZ 6.34 5.59 6.05 6.29
ANZ Blueprint to Build - - - -
ANZ Special - 4.99 5.45 5.69
ASB Bank 6.35 5.25 5.45 ▼5.69
Avanti Finance 6.65 - - -
Basecorp Finance 7.25 - - -
Bluestone 6.89 - - -
BNZ - Classic - ▼4.95 5.39 ▼5.69
BNZ - Mortgage One 6.39 - - -
BNZ - Rapid Repay 6.39 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 6.39 ▼5.55 5.99 ▼6.29
BNZ - TotalMoney 6.39 - - -
CFML Loans 7.25 - - -
China Construction Bank - 5.35 5.80 5.99
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼4.89 - -
Co-operative Bank - Owner Occ 6.25 ▼4.99 5.39 5.89
Co-operative Bank - Standard 6.25 ▼5.49 5.89 6.39
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 5.35 5.85 -
Heartland Bank - Online 4.60 4.90 5.29 5.39
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.50 5.60 6.00 -
HSBC Premier 6.34 5.09 5.34 5.59
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.00 ▼4.79 5.15 ▼5.69
Kainga Ora 5.85 5.31 5.58 5.97
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.00 5.95 6.45 6.79
Kiwibank - Offset 6.00 - - -
Kiwibank Special - 4.95 5.45 5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society ▲6.95 5.55 6.15 -
Pepper Money 5.29 - - -
Resimac 5.59 6.54 6.44 6.98
SBS Bank 6.29 ▼5.39 ▼5.79 5.99
SBS Bank Special - ▼4.89 ▼5.29 5.49
Select Home Loans 6.89 - - -
TSB Bank 7.05 ▼5.65 6.09 ▼6.39
TSB Special 6.25 ▼4.85 5.29 ▼5.59
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 6.49 5.55 6.15 -
Westforce credit union - Special - 5.35 5.85 -
Lender Flt 1yr 2yr 3yr
Westforce credit union - Standard 5.85 6.05 6.55 -
Westpac 6.39 ▼5.55 6.05 ▼6.29
Westpac - Offset 6.39 - - -
Westpac Special - ▼4.95 5.45 ▼5.69
Median 6.34 5.33 5.79 5.93

Last updated: 10 August 2022 9:06am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com