New Zealand’s economic and business outlook, is a game of two halves, says Auckland Business Chamber CEO Michael Barnett.
The Chamber’s latest business confidence survey shows a resounding optimism about economic recovery. 80 per cent of enterprises, particularly larger operations in construction, trades, technology and even hospitality indicated they are expecting to do the same or better in the next six months and are looking at expansion and hiring.
It was the medium sized businesses who still expressed uncertainty and caution.
“We have enterprises on one side of the field who are optimistic and confident.
They are operating agile strategies and are equipped to take advantage of closed borders to feed demand by New Zealanders spending this time locked away from the world by splashing out on their nests, lifestyles and consumables.
Then there are the mid-sized businesses. They are struggling with uncertainty, have yet to pivot and running out of reserves and resolve. This includes those hammered by the multi-billion-dollar loss of international tourism that domestic travel cannot make up,” Mr Barnett said.
While we’d like to say we are as good at opening up safely as we have been in locking ourselves down, the Government has told us that our borders are likely to remain closed to most of the world for the rest of the year, with the exception of possible travel bubbles with our close neighbours.
“Rather than bemoan this reality which will bite us if we do nothing, we need to leverage the business optimism that is out there.” Mr Barnett said.
“Let’s get on with life and invest, create, repurpose and find new opportunities to fill the void and bring the two halves together.
It has to be business and Government, locally, regionally and centrally helping each other to enable new enterprises and new events. We need more games of two halves on the field in real life and attractions that will encourage Kiwis to keep on seeing their country to support our economy and renewal.”
The full survey can be found here.
For more information, please contact Michael Barnett on 027 563 1150
Michael Barnett, Chief Executive, Auckland Business Chamber