PSK Private Wealth’s Post

New Zealand's economy has faced a setback, with new GDP data revealing a contraction of 0.2% in the last quarter. Despite challenges like high interest rates, the Kiwi economy has seen negative results for five out of the last seven quarters. The recent decline in GDP per head by 0.5% highlights ongoing struggles, emphasising the impact of migration on the economy. Read more: https://heyor.ca/OIZzcy #NewZealand #GDP #Economy

NZ's board directors see better days ahead New Zealand’s GDP growth might be negative, but company directors are far more confident about economic prospects than they were a year ago. A survey produced by the Institute of Directors (IoD) and ASB found 52% of respondents expected the economy to improve in the next year, compared with 28% last year. Institute of Directors in New Zealand Greg Hurrell https://lnkd.in/g8pAgYwK

Australia's economy is facing challenges with minimal growth, flatlining productivity, and a declining household saving ratio. According to KPMG's Australian Economic Outlook, the GDP only grew by 0.1% in the first quarter of 2024, highlighting the struggle for forward momentum. It's crucial to monitor these economic indicators closely for potential impacts on businesses and households. Read more: https://bit.ly/4ffr6OD #AustraliaEconomy #EconomicOutlook

Fifth consecutive quarter of negative GDP per capita growth The ABS released the June national accounts on Wednesday marking Australia’s fifth consecutive quarter of negative GDP per capita growth. Since September 2022, Australia has only recorded one quarter of positive GDP per capital growth. One major flaw in the GDP measure that especially affects Australia is the free kick provided by population growth, which, in Australia’s case, means immigration. Looking back 50 years to 1973 (when the per-capita series starts), population growth has provided 50% of the GDP growth, with GDP growing at a 3.0% compound average growth rate, compared to GDP per capita, which has averaged 1.5%. While all the talk is on cost of living and inflation pressure, it’s worth noting that while the government has been proudly reporting unbroken economic growth, on a per capita basis, GDP has been flat or negative for seven of the last eight quarters. Immigration is the magic lever governments (of all colours) have become addicted to in order to boost GDP (and housing prices). If GDP looks to be slowing, just let a few tens of thousands more people into the country and watch the GDP grow, although, with the growing discontent at the ongoing housing crisis and the increasingly weaker GDP, the party might be nearing an end. Full report: www.vennbrown.com

The June quarter saw GDP per capita drop -0.4%, the same as the March quarter and only slightly better than the -0.5% recorded in September. Only 1 of the last 8 quarters, has delivered positive GDP per capita growth. And while GDP has remained slightly positive over that time, over the last 50 years immigration has been responsible for more than 50% of Australia's GDP growth. No party wants to be in government when the economy enters a recession, but this can lead to policies that cause far more long term pain and economic structural damage.

New Zealand’s economy has officially entered a recession, with GDP contracting by 1% in the July-September quarter, according to data released on Thursday, 19 December 2024. This marks the second consecutive quarterly contraction, following a revised 1.1% decline in April-June 2024. #NZ2025 #Recession  #NewZealand

This week on #CannyView, we have a succinct article about GDP. During the March 2024 quarter, New Zealand saw a 0.2% growth in GDP. However, GDP per capita has declined for the sixth consecutive quarter, highlighting the persistent economic challenges. And there's never been anything this bad as far back as Statistics NZ reports. For investors, the question arises: how can they effectively manoeuvre through these tough economic conditions? #financialadviser #financialadvisor #wealthmanagement #financialwellbeing #investing #kiwisaver

This week’s GDP data release presents a stark reminder of the underlying economic challenges we face. Much like an iceberg, the true enormity of our economic situation lies beneath the surface. While the headline figures may capture immediate attention, a closer look at GDP per capita reveals a sobering reality. https://lnkd.in/gsWE7pHP Canny View: What is GDP and why is it important?

A recession by any other name. The June quarter's GDP figures have just come out and while most headlines will focuse on +0.2% topline growth (up from +0.1% in the March quarter), once again it hides the real story of the second consecutive -0.4% GDP per capita decline. June represents the 5th consecutive quarter of negative GDP per capita growth. In fact seven of the last eight quarters have seen GDP per capita decline (six) or remain flat (one). Since 1973, Australia has had 51 negative quarters of GDP per capita growth, compared to just 25 for GDP. Immigration has been hugely important to Australia, helping drive economic growth and innovation, but a country reliant on it for growth puts itself in a precarious position. With ongoing cost of living pressures and the housing crisis continuing unabated, how long until the music stops?