The Financial Year Ahead

Written By Kim Manunui

The new financial year is upon us and we’re set to fly from here on out.

With all the pain of the last 5 years behind us, interest rates are easing to near their resting place and we’re poised for growth in GDP with house prices settled and signs of upward trends … we’re on the mend.

All we need is for the rest of the world to calm down a bit or a lot and we’ll all be okay … at least we’re down here in the bottom right hand corner of the world away from all the madness.

Economists are all saying what we just said above with the outlook positive if not a bit reserved in the shorter term with positive expectation of brighter times ahead … it can’t come soon enough.

A bit like a plane taking off … we’ve boarded the plane, left the terminal behind and right now are taxiing out to the runway which is about ¾ of a year long so hitting the gas and getting a good run up we should be off the ground by the end of the year and wheels up this time next year, heading for the skies … and fly we will.

So get ready, set, go … for FY 25/26, make it a good one and we’ll be set to soar in 26/27.

Gross Domestic Product ( GDP )

This is the all important measure of the health of the economy with the latest figures released on 20th March stating the Q4 24 GDP figures were up 0.7% on the back of a 1.1% fall in Q3 24 and 0.5% fall for the year in 2024 compared to 2023 … all very dry stuff.

So we’re skidding along the bottom, all pretty flat and not doing much at all in terms of GDP growth but at least we’re technically out of recession but not by much, if you want a really dry read about it hit the following link to the Stats NZ site >>> www.stats.govt.nz/information-releases/gross-domestic-product-december-2024-quarter

Economists are hinting at GDP growth from mid-way through this year and of course with interest rates eased with a tad more to go will help put more in the back pockets of some NZ’ers which increases consumption which ramps up production which creates jobs and suddenly you have GDP and jobs growth which starts to get the wheels turning and heading down that runway at an ever increasing rate.

Official Cash Rate ( OCR )

With the next Monetary Policy Review and OCR announcement set for 2pm Wed 9th April and with Adrian Orr now resigned as Reserve Bank Governor, a position held since March 2018, and with Deputy Governor and CEO Christian Hawkesby as acting Governor for the next 6 months, it will be interesting to see where we go from here, with the OCR currently at 3.75%, whether they hold it in restrictive mode, ease it down or dial it back quickly to 3.0% as there is a lot of pressure to do so and just get the show on the road / runway.

Click the following link to the biography of Christian Hawkesbury and the current Reserve Bank Executive Leadership Team that monitor the economy, meet and make the decisions re the OCR, looks like we’re in pretty good hands >>> www.rbnz.govt.nz/about-us/our-people/our-executive-leadership-team/christian-hawkesby

What else is going on this new financial year

As at April 1st changes come into effect from increases in minimum wages, benefits, student loan allowances and interest, to line charges, visa settings, migrant investors and Pharmac funding … check out the link to the 1News article that covers that >>> www.1news.co.nz/2025/03/31/minimum-wage-power-bills-whats-changing-on-april-1

So from me, that’s it for now … back in touch soon, meantime if you have any enquiries for finance, mortgage or insurance whether its for personal, commercial or rural applications just hit the button below to get in touch 😊

Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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Two years on and growing strong