Bite-sized video updates on the New Zealand economy and markets.
Chief Economist Dominick Stephens presents economic insights in this two-minute weekly video.
The Government's budget stacks up for now, but we are not sure how the book will look when the economy slows later in the decade.
We propose a new explanation for Auckland's rapidly rising house prices... ironically, liberalising the rules around housing supply may have driven up the perceived value of land.
Firms are definitely hiring, but there are plenty of workers available and wage growth remains low. Adjusted for inflation, these small-seeming wage increases are actually giving the biggest gains in purchasing power for a decade.
The Reserve Bank has changed its assessment of the balance of risks. But there is still a deep tension between low inflation and the strong economy.
Chief Economist Dominick Stephens presents economic insights in this bite-sized monthly video updates.
We hope you find these updates helpful in shaping a view of what's in store for you beyond the farm gate.
We are looking for a farmgate milk price next season of $5.70 per kg - this month's video asks whether this is the new normal. Meanwhile, there is actually quite a divergence in fortunes between New Zealand's main agricultural export products.
It looks as though the summer drought had a less severe impact on the rural economy than initially feared... but as drought fears have subsided, dairy prices have come under renewed downward pressure.
Dry weather remains the biggest consideration for the farming sector. Dairy prices have benefitted to some degree, but beef and lamb prices have suffered.
The hot, dry summer is going to hit rural economies hard. But prices will respond to this change in supply conditions... creating a double-whammy for sheep farms, and a silver lining for dairy.
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