New Zealand economy looks positive
New Zealand, 14th April: New Zealand economic outlook has shown significant improvements in the current year, credit agency Dun and Bradstreet has stated.
The economy of New Zealand is expected to grow further by 1.8 percent in the year 2010, the agency maintained. The reason for the improved economic outlook of the country could be attributed to improvements in certain key markets providing support to New Zealand exports.
Some of the key markets that have resulted in reducing the risk of liquidity for New Zealand’s economy and ushered developments include China and Australia.
Despite improvements in the economy of the country, especially in three quarters of the year, unemployment has failed to show any downward trend and has continued to grow unabatedly. This has undermined the recovery made by the nation.
Nonetheless, the recovery by New Zealand’s economy is a remarkable achievement especially at a time when even developed countries are struggling to show any signs of recovery from the global economic slowdown, asserted general manager of Dun and Bradstreet (D&B) New Zealand, John Scott.
No wonder, New Zealand among the top four safest nations in the region and one of the top 20 nations in the world, the data by D&B states.
As per the ratings by D&B, total sixteen nations have slipped from their earlier rankings since the beginning of this year. Among the nations whose ratings have gone down include the Netherlands and Japan.
Although, New Zealand is stated to have significantly low risk environment for investments in businesses, however, global competition will increase many fold as the different nations of the world recover from economic crisis, Mr. Scott quipped.
To cope up with increasing global competition in the coming times, New Zealand needs to concentrate more on strong management of the economy, better reforms and ensure sound risk practices, he added.
New Zealand faces challenge of significant reductions in the government aided economic stimulus. Also, there is a probability of hike in the interest rates this year.
Australia got DB1d rating while New Zealand received DB2c rating in the Asia-Pacific region