As the world continues to battle the effects of the pandemic, businesses across the globe, including those in New Zealand, have had to adjust to the “new normal” in order to stay afloat. In this article, we provide you with the latest RNZ business news, focusing on developments in the stock market and economy.
Stock Market Updates
The stock market has been on a rollercoaster ride in recent times, experiencing sharp declines and swift recoveries in equal measure. As of 4 September 2020, the NZX 50 Index, which measures the performance of the top 50 companies listed on the New Zealand stock exchange, had risen by 0.42% to close at 11,790.86 points. This marks a significant improvement from the lows of March 2020, where the same index bottomed out at 8,590. The rally has been largely fueled by the strong performance of technology, healthcare, and other vital sectors of the economy that have proven to be resilient to the economic shocks caused by the pandemic.
Economy Updates
The New Zealand economy contracted by an estimated 1.6% in the first quarter of 2020, according to figures released by Stats NZ. This was the first quarterly contraction in more than six years, with economists predicting a deeper contraction in the second quarter due to the impact of the nationwide lockdown prompted by the coronavirus pandemic. Despite this setback, there are positive indicators that point to a gradual recovery. According to data from the Real Estate Institute of New Zealand (REINZ), the nationwide median property price rose by 15.1% in July 2020 as compared to the same month last year. This is a clear indication of the resilience of the property market and confirms that there are still opportunities for growth in the sector.
Conclusion
It is clear that businesses in New Zealand, just like their counterparts across the globe, are facing unprecedented challenges as a result of the pandemic. However, with evolving market conditions, businesses and stakeholders must adapt their strategies and continue to innovate in order to remain competitive in the ever-changing landscape. By keeping track of the latest developments in the economy and stock market, businesses can make more informed decisions and chart a path to long-term success.
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