NZ economy still uncertain

NZ economy still uncertain article image
New Zealand's economy is still in uncertain territory, according to global credit reporting agency Dun & Bradstreet (D&B). In its quarterly Global Economic & Risk Outlook Report, D&B cast doubt on sustained recovery worldwide, which in turn would affect NZ's recovery. The NZ economy has shown early signs of growth, however, with a lift of 0.1 percent for gross domestic product in the June quarter, the first growth for six quarters. D&B attributed the growth to government stimulus measures and rebounding inventory demand, as well as a boost to disposable incomes due to lower interest rates and lower taxes, which has lifted consumer sentiment. The report warned, however, that these factors were not sustainable. "Signs of promise are becoming increasingly clear for New Zealand," said John Scott, D&B New Zealand's general manager. "However, returning to sustained and significant growth presents its own set of challenges. To successfully manage the new tests that we face, New Zealand firms must maintain an unwavering focus on the fundamentals of risk and cash flow management."


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