With the election behind us and even though the final government structure will take some time to formulate, there are a few things that point to where this is going.
Insights with Infinance by Brian Coogan
Recent information through from economists and research data point to a slow and steady recovery with house prices settled and set for measured improvement.
Australia on the other hand are where we were in about 2022 and projected to experience a sharp downturn in property prices as much as 15% with their OCR at 4.85% whereas ours is 2.75% however likely to rise to 3% in the 9th December 2026 review. Where we let the air out of the over inflated balloon slowly, reports indicate theirs is likely to be a much quicker deflation.
With so many balls in the air with the USA midterms, Israeli elections in deadlock, the future of the war in Iran and our own election in hold pattern, it’s easy to think the place for your head is inside the shell.
Fortune does however favour the bold. For the last 20 years or so we've had a largely property driven economy which is now changing to a more business driven front with September reportedly the biggest month in business lending ever, reflected in what we're seeing at Infinance and with our commercial lenders.
Political stability matters, but lasting prosperity requires more than rising property values. It needs businesses willing and able to invest, compete and grow.
Whatever election outcome eventuates, the challenge is to turn investment into productive businesses, sustainable jobs and stronger household incomes.
While there may be a trend away from the two dominant political parties to multi-party coalitions, there's also quite a bit of commentary around the voting system itself and its fitness for purpose now it’s being gamed with the overhang, with calls for review.
With the NZ economy poised for growth, I’d rather be here then pretty much anywhere.
For more on the above go to www.infinance.co.nz/insights
Written by Brian Coogan, Licensed Financial Adviser and Director at Infinance – Taupo