Economist Cameron Bagrie provided members with some keen insights into current operating conditions at our recent Tuesday Team Talk. Cameron’s theme was ‘Unlocking New Zealand’ and key takeaways included:
- Auckland’s lockdown will disrupt usual seasonal cash flow patterns for businesses with pressure building as lockdown continues.
- A move away from housing as a source of wealth creation is required in favour of the productive (business) sector. This change is hard to imagine at present but inevitable with housing testing economic and social boundaries.
- With Covid’s impact constraining the supply of products and labour, expect annual inflation in NZ to remain sticky around 3% and become the new normal.
- Credit conditions are at their lowest point ever with banks favouring housing loans.
- Education is one of the keys to NZ’s future. Declining school achievement is a real concern.
Members had the chance to quiz Cameron on some of the points and discuss how, as business owners, they’ll be tackling some of the issues.