Business confidence has fallen to the lowest point since the global financial crisis a decade ago:
The further collapse in businesses’ confidence and in expectations of their own activity is an indictment on the Ardern Government’s economic management, National’s Finance spokesperson Paul Goldsmith says.
“The most recent ANZ Business Outlook survey shows a net negative 52 per cent of businesses are pessimistic about the economy under the bad economic management of the current Government.
“To make it worse, businesses’ expectations of their own activity have fallen to a net negative for the first time since 2009 when the New Zealand economy was in the midst of the Global Financial Crisis. . .
“When businesses lack confidence in the economy, as they do under the current Government, they are less likely to expand, invest in new staff or lift wages.
Reluctance to expand, invest or lift wages is even more likely when businesses’ expectations of their own activity are so gloomy.
“There has been a sharp decline in the New Zealand economy under this Government. Economic growth has decreased from around 4 per cent down to 2.5 per cent, per-person growth is amongst the worst in the OECD and business investment has fallen from 5 per cent a year under National to just 0.6 per cent under Labour.
“New Zealand should be doing well. The prices for goods we export are near historical highs meaning any effects from global uncertainty and trade tensions haven’t affected our exporters as of yet.
In spite of that farmers are in a similar frame of mind to that during the ag-sag of the 1980s. Uncertainty and lack of trust in the government are compounded by fear of what it is going through inflict on the farming sector.
The ANZ survey shows the business blues have deepened in towns and cities too.
“Sadly the current Government’s bad economic management have hurt our economy.
“The Government have added costs to businesses and families with higher taxes and more regulations, they’ve created massive uncertainty and they’ve demonstrated incompetence, most famously with KiwiBuild and their woeful infrastructure policies.
“National will restore business confidence and revive our economy so that we can lift our aspirations, both in what we can earn and in what social challenges we can overcome.”
A thriving economy isn’t just about businesses doing well, it’s about job security, export income and the ability to invest in solutions for social problems.
The government has gone quiet on wellbeing with good reason. Businesses without the confidence to expand, invest and lift wages are a symptom of economic illness and that makes a very shaky foundation for wellbeing.