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New Zealand has now entered a select group of nations whose economies have grown in size since the start of the coronavirus pandemic. The country witnessed a widely unexpected broad-based growth of 1.6% in the March quarter of 2021, in spite of Auckland being under Alert level 3 lockdown for 10 days.
New Zealand recorded an annual GDP growth of 2.4%, landing on the 19th position in the world, and on the 5th position in the OECD. While the corresponding figures for Australia are grim with 1.1% annual GDP growth, the country ranks 28th in the world and 10th in the OECD.
New Zealand steps ahead of Australia
New Zealand followed hard and early lockdown approach in tackling COVID-19. PM Jacinda Ardern implemented the first stimulus package on February 18, 2020.
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While Australia announced stimulus measures more than 3 weeks after New Zealand.
ALSO READ: Is New Zealand economy at pre-covid levels?
Here is a look at the performance of few economic indicators of Australia and New Zealand.
- NZ’s jobless rate at March end stood at 4.7% and on the ninth position in OCED, Australia was at 5.6% and on the 14th Australia has shown some improvement by coming at 13th position with unemployment rate at 5.1%.
- Wages grew at a healthy rate of 4.1% in New Zealand in the March quarter compared to the dreadful 1.5% in Australia.
- Private consumption numbers dropped by 5.9% in Australia compared to 3.9% in NZ.
- While Australia’s public debt was 63.1% of GDP in 2020, New Zealand’s figures expanded 41.3%.
ALSO READ: Kiwi & Aussie dollars recover lost ground, stand firm against USD
Bumpy road ahead
Though New Zealand’s key economic indicators point towards the economy bouncing back, the country still faces substantial challenges and constraints to its growth.
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The BusinessNZ Economics Conditions Index that measures major economic indicators in NZ recorded a figure of 12 for the June quarter, up by 6 and 26 on the prior quarter and on a year ago, respectively. However, the growth is expected to remain hampered due to continued border restrictions that might stay till next year.
ALSO READ: Would NZ$1-billion fund aid in solving New Zealand’s housing crisis?
Further, slow vaccine roll-out in the country and housing remains major concerns for Kiwis with house prices on a relentless rise despite steps taken by the RBNZ and the Government.
DO READ: Is Kiwi Consumer confidence on a recovery mode?
With inflationary pressures increasing and supply bottlenecks affecting several sectors across the board, obtaining much-needed qualified employees remains a top priority for many businesses. These pressures are exacerbated by closed borders and persistent supply chain difficulties.
