Summary
- New Zealand sees an increase in its retail card spending owing to the successful handling of the pandemic and opening of the trans-Tasman bubble
- The consumer confidence levels have now increased, resulting in strong growth in Kiwis’ spending
- With more women joining the workforce, NZ’s labour force is projected to grow
New Zealand's successful curtailment of the pandemic within its border and the positive signs of the revival of its economy soon after, was enough to boost the confidence levels of the New Zealanders.
As per the ANZ-Roy Morgan’s report, New Zealand’s consumer confidence level was recorded at 115.4 in April 2021, up by 4.6 points.
Must Read: April retail sales rise as shoppers brush aside pandemic woes; consumer stocks up
Also, with the launch of various BNPL (Buy Now Pay Later) schemes, consumers have got a much-needed relief as they can now purchase items with higher price tags through EMIs, thereby making the items more affordable.
Recommended Reading: Did COVID-19 Draw More Customers Towards BNPL Sector?
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Retail card spending sees a boom
Fueled by the above-mentioned reasons, Aotearoa witnessed a surge of NZ$189 million in its card spending across all the industries between April 2021 to May 2021.
Do Read: New Zealand’s Retail spending grows 2.5% in Q1 2021
It is noted that card spending covers electronic card transactions, be it debit, credit or charge card transactions.
The retail card spending registered a lift across all the industry segments for the first time ever since the Kiwi nation moved back to level 1 in June 2020, according to Stats NZ.
In May 2021, the non-retail industries like postal, courier services and medical businesses posted an increase of 4.0%, up by NZ$67 million.
Furthermore, the durables industry, which comprises of spending on furniture, entertainment goods, and departmental shopping, saw the biggest jump in April 2021 as compared to April 2019.
Other reasons for increased card spending
Also, with the opening of the trans-Tasman bubble, the confidence levels amongst the Kiwis are high, which has resulted in solid growth in their spending, as stated by Geraldine Duoba, business statistics manager at StatsNZ.
Moreover, with the country oscillating between alert levels in the months of February and March 2021, the pent-up demand must have resulted in increased spending in April 2021.
Read: Retail Card Spending Picks-Up After Lockdown
During winter season, people are stocking up their wardrobes with warm clothing and are using their vehicles a bit often.
Douba also stated that with limited international travel opportunities, the New Zealanders are now focused on upgrading their lifestyle and leisure pursuits.
Aotearoa’s Labour force projected to grow
In a new revelation, Stats NZ mentioned that NZ's labour force is expected to increase because of its growing population and high levels of participation by women in the workforce.
Towards the end of Q1 2021, the Kiwi labour force comprised of 2.9 million people, which is likely to grow about 3.2 million in the initial years of 2030s.
However, it is anticipated that the number of people aged 65+years will be more in the labour force as the trend indicates; in 1990, 1 in 15 people was aged 65+, in 2003, it was 1 in 10, and now it is 1 in 4 people aged 65 years and more.