Despite downbeat economic predictions and an imminent global recession, the New Zealand recovery offers opportunities for entrepreneurial success that exceed anything we’ve seen for decades.
According to the collected data released by the New Zealand Treasury, many of our key markets are currently faring better through this Covid-19 epic disaster than predicted in March.
Retail card spending us up on the same time last year, according to Paymark, but when groceries are excluded, it’s a little down.
The weekly growth in Jobseeker Support was surging but has trended down fast, according to the Ministry of Social Welfare.
Earlier this week the Ministry for Primary Industries released the Economic Update for the Primary industries, which shows year-to-date primary industries export revenue is tracking 4.5% ($1.7 billion) higher than the previous year.
Dairy exports were particularly strong since the start of March, up $512 million or 12% annually.
China just loves our meat exports, with African Swine Fever making us look awesome, and of course they’re turning away Australian beef.
Our apples and kiwifruit have already shot up 18% on last year.
And we know that this years’ wine vintage is going to be one of the very best on record. Babich is doing a Patriarch, Alpha Domus is doing a Pope, so the Penfold Bin 48s and beyond can get stuffed.
The main ministers noted that this agricultural sector is fuelled by government cash as well:
We are committed to supporting our vital primary sector continue to fetch value and create jobs – including $19.3 million to place 10,000 people into primary sector jobs, $127 million for jobs to help control wilding pines and get populations of wallabies under control and the government’s $110 million worker redeployment package, to create employment for people who have lost their jobs.”
If you turn to pretty much every sector of our economy, all of them as industries have recovery plans that the government is organising with them, or throwing bailout funds at, or both.
There was no grand plan. They Just Did This.
Hard on the heels of the jaw-dropping scale of the wage subsidies, this week the government has released a massive accelerant to the construction, local government, and infrastructure industries with 11 projects that need acceleration and are going to get it with special legislation which will be introduced into the House this week, and has a 2 year sunset. The jobs are:
That’s a lot of locals with mortgages paid and food on the tables.
For the big-thinking version of rebuilding New Zealand’s economic framework, PWC have been doing some useful work for Treasury and MBIE to consider.
For companies, partnerships, trusts, couples, and workers, we are all re-setting our lives and our expectations. We are re-thinking our selves, and making moves.
We can already see that some industries are so damaged by Covid-19 that they will never recover, or be reduced to the size of minor cottage affairs.
It’s also clear that Prime Minister Ardern has secured a global competitive economic advantage that looks set to benefit us for as long as the virus smashes around the world.
The big economic engines of our recovery are firing, and this government is guiding the re-launch very closely.