New Zealand’s economy is in a stronger position, even as the Delta COVID-19 variant rages across the world. This stronger economic position, combined with sustained supply chain issues, and a change of direction for the Reserve Bank, means the end of super low interest rates. Chief Forecaster Gareth Kiernan and Principal Economist Brad Olsen examine the latest data, and change tack on interest rates, picking possibly a 50bp hike in August.
Our latest forecasts, published earlier in July, underscore the challenges we note around a stronger economy. As Gareth points out, the current level of activity might be unsustainable.
Senior Economist Rob Heyes analyses the circular economy concept, what it would mean for different sectors, and what policies would be needed to implement a shift in direction.
Brad then details changing trends in migration, finding that it’s not people coming to New Zealand, but rather people not leaving, driving current trends. And to round out the month, he also looks at how much each industry pays on average, and what these pay rates mean for firms gripped by labour supply problems.
