In recent years there has been renewed hope as we’ve entered each new year that prospects would improve for the many businesses and households struggling to make ends meet, and this year is no different. A renewed hope has once more come to the fore, with a ‘Happy New Year’ being top of many peoples’ wish lists after having to deal with so many varied economic challenges for what seems like an eternity. 

For far too long, all I can remember talking about is the difficult situation that businesses and households have continually found themselves in because of challenging economic circumstances, many of which are out of our control. We’ve faced lockdowns, supply chain issues and a shortage of labour, followed by the cost-of-living crisis fuelled by high interest rates, high inflation and ridiculously high food and fuel prices. Then, if all that wasn’t enough, the catastrophic weather events of 2023 added more immediate misery for some, with the longer-term effects being higher insurance premiums and Council and water rates for everyone.
On a brighter note, inflation was deemed by the Reserve Bank of New Zealand (RBNZ) to be under control and within its target settings earlier than expected last year. Consequently, we saw consecutive reductions in the Official Cash Rate (OCR), which in turn triggered reductions in some interest rates by the banks. These reductions, which have recently been continued by some banks, have provided welcome relief, and although for some their impact may take some time to have an effect, it’s a move in the right direction.
Despite these positive signs, we’re not out of the woods with rising unemployment and Finance Minister Nicola Willis revealing late last year that the Government books were in a worse position than expected. We’ve still got some way to go before we can say with any confidence that we’ve turned the corner and our short and long-term economic future is bright, but in the recent Cabinet re-shuffle, the economy and our economic recovery were once again prioritised by the Government, signalling what I hope will lead to an improved economic climate from which we can all benefit.  
Amongst the ongoing negative murmurings are some positive signs that the current financial pressures will ease over time, and there is a new level of optimism for the year ahead based on recent improvements in business and consumer confidence. Given this optimism, I sincerely hope we all enjoy a happy, positive and successful 2025.
Thank you for your continued support of our local businesses, and I would, as ever, ask you to please continue with that support as we embark on the next stage of our economic recovery journey.
 
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