Breaking Down the Latest NZ Business News
New Zealand’s economy is on the road to recovery as it’s emerging from the COVID-19 pandemic. While the country’s economy contracted by 1.6% during the June 2020 quarter, it made a quick rebound in the following quarter and grew by a staggering 14% – making it the highest quarterly growth recorded in New Zealand’s history.
The New Zealand government’s swift and decisive response to the pandemic has played a significant role in the country’s economic recovery. The authorities have implemented several initiatives to help businesses recover from the economic downturn caused by the pandemic. One such initiative is the COVID-19 Business Advisory Fund, a program that offers small- and medium-sized businesses free business advisory support worth up to $5,000.
In terms of specific industries, New Zealand’s tech sector is one of the fastest-growing in the world. This year, the government pledged to invest approximately $61.1m into the tech sector, with a specific focus on artificial intelligence (AI). The government’s investment aims to upskill tech professionals in the country and drive innovation in AI.
In other news, New Zealand’s largest insurer, IAG New Zealand, is taking steps to reduce the risk of insuring properties in high-risk flood zones. The insurer recently announced that it will no longer be providing insurance coverage to properties located in high-risk flood zones unless the property owners implement flood-resistant measures. This decision comes in response to the increasing frequency of flooding incidents in New Zealand, which has led to skyrocketing insurance payouts in recent years.
Finally, New Zealand’s agricultural industry is expected to benefit from a new export deal. In November 2020, the government signed a free trade agreement with the United Kingdom. The agreement allows New Zealand’s exporters to sell their products in the UK market with zero tariffs. This deal is expected to significantly boost the country’s dairy and meat exports.
In conclusion, New Zealand’s economy is bouncing back from the pandemic, and the government’s initiatives are driving the recovery. The tech sector is growing rapidly, and the insurance and agriculture industries are also experiencing changes. New Zealand’s businesses are slowly returning to pre-COVID levels, and this trend is set to continue in the coming months.
