NZIER Report Shows Record Business Confidence Since 2021: A Boost for NZ Economy

Finance Minister Highlights Positive Economic Trends and Government Support.

The latest Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER) reveals the highest level of general business confidence since 2021, a development hailed by Finance Minister Nicola Willis as evidence of the country’s economic recovery.

“When businesses have the confidence to invest and grow, it means more jobs and higher incomes for Kiwis,” Willis stated.

The survey highlights a marked improvement in sentiment after years of economic challenges, including high inflation and climbing interest rates. This uptick comes as inflation drops to 2.2% annually, and the Reserve Bank of New Zealand has implemented three official cash rate reductions since August.

Key Indicators of Economic Recovery

For the first time since June 2021—and only the second time since 2017—business confidence has entered positive territory. This change signals growing optimism among New Zealand businesses, buoyed by a shift in economic conditions and government initiatives aimed at fostering growth.

“The survey shows business is feeling more positive after doing it tough through a period of high inflation and climbing interest rates,” Willis said. “This is a strong signal that the Government’s plan to rebuild the economy is working.”

Government Measures Supporting Growth

The Finance Minister credited the government’s targeted measures for this positive trend. These include:

• Fast-Tracking Projects: Prioritizing infrastructure and economic development projects.
• Trade Agreements: Expanding international trade opportunities for Kiwi businesses.
• Education System Reforms: Refocusing on core skills to meet the demands of the modern workforce.
• Reducing Red Tape: Simplifying regulations to ease the path for businesses to innovate and grow.

Willis emphasized that these measures have provided businesses with the confidence to invest and expand, which translates into tangible benefits for New Zealanders through job creation and increased incomes.

Business Community Optimistic About the Future

The improved business outlook is further supported by easing financial pressures. Lower borrowing costs, driven by declining inflation and reduced interest rates, have created a more favorable environment for business investment.

“Businesses know this Government has their backs, and that’s why more of them are taking heart that the economy is turning a corner,” Willis said.

The NZIER survey underscores the resilience of New Zealand’s economy and provides a promising outlook for the year ahead. With a renewed focus on economic development and strategic investment, the country is poised for sustained growth and prosperity.