In the midst of economic challenges, the recently released national GDP figures indicate a 0.3% decline for the country, marking two consecutive quarters of negative growth.
CEDA Chief Executive Jerry Shearman acknowledges the impact of New Zealand's engineered contraction on the domestic economy. Mounting pressures on household budgets and business activity will be concerning as we move into another year of higher interest rates, but there is light at the end of the tunnel as inflationary pressure subsides and future interest rate expectations ease.
Consumer spending faces challenges due to higher interest rates and the rising cost of living. Despite a decline in spending, the latest Quarterly Retail Report shows a 2.5% increase in electronic card spending in Manawatū, with a focus on supporting local businesses becoming more crucial.
Tourism spending in Manawatū rises, contributing to the local economy. Despite challenges faced by the hospitality industry, tourism-related businesses witness increased spending. The Director of Little Savanna, Margie Holmes notes challenges such as the cost of living crisis, labor cost increases, and government regulations but expresses optimism for an upturn in business.
As the region navigates through economic uncertainties, supporting local businesses and maintaining community resilience remains pivotal. Despite challenges, positive indicators in various sectors and the region's overall resilience offer hope for improving conditions as we move into 2024.
In the meantime, shopping and supporting local has never been more important as we move through the festive season.
