For this assignment, we will discuss the outlook of the growing business sector in the New Zealand economy, with a focus on the business sector. Currently, New Zealand is experiencing growth in several industries. This makes the nation very lucrative to invest in. The New Zealand dollar also looks to increase in value given the country’s engagement in meat and dairy products. In the service industry, the average Compound Annual Growth Rate (CAGR) was 8.8% in the food and beverage sector. The transport and logistics sector is also booming, with roadworks improvements, enhancement in shipping and container products, and processes. However, the slowdown of the global economy is bad news for New Zealand businesses. Additionally, the country is experiencing drivers shortages.
outlook of the growing business sectors in New Zealand
NEW ZEALAND ECONOMIC OVERVIEW
The New Zealand economy is one of the least regulated economies in the world. This means that the country has an enticing business environment for potential and existing entrepreneurs. Additionally, New Zealand has fertile soils for agriculture, and improving technological capability makes New Zealand businesses very competitive worldwide. Improved agricultural technology signals growth in forestry, farming, and horticulture as well. The country also has low inflation, where the Reserve Bank manages and controls monetary policy. This ensures that the New Zealand dollar remains stable in the world economy, being one of the eight major currencies in the world. Tourism, film production, and winemaking are also significant in the New Zealand economy.
OUTLOOK OF THE GROWING BUSINESS SECTORS AND NEW ZEALAND ECONOMIC FORECAST
The future of the New Zealand economy is somewhat uncertain. The world is currently in recession, given the coronavirus pandemic. Additionally, the United States and China are now in trade wars. Many states are facing financial instability and market volatility. This affects the value of the New Zealand dollar significantly. In New Zealand, Westpac bank economists adjusted their 2020 annual GDP forecast from 3.1 percent to 2.3 percent. They expect unemployment to rise in the coming months. Most New Zealand businesses are already facing the impacts of the recession, especially given the uncertainty of when global business activities will resume normally.
New Zealand economic forecast at
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