Kiwi business optimism is falling well behind that of Australia, according to a survey by accounting and consultancy organisation Grant Thornton International.
The International Business Report surveyed more than 7500 owners of medium-sized businesses in 34 countries during December and found the outlook for the economy for the
next year in New Zealand was a net positive 30 per cent, compared with a global average of 42 per cent and 77 per cent in Australia.
The previous year's results for New Zealand and Australia had been closer at 42 per cent and 62 per cent respectively.
Grant Thornton New Zealand spokesman Peter Sherwin said the difference with Australia was disturbing.
"Coming on the back of statistics showing more New Zealanders going to Australia to live and work in what is perceived to be a better economy, it is a worrying commentary on the economic state of New Zealand," Sherwin said.
"We are seeing a drain of New Zealand individuals and businesses to our big neighbour and we really cannot afford such a lack of optimism here."
New Zealand ranked 23 out of the 34 countries surveyed, with India and the Philippines top of the list at 95 per cent and Australia tied with China on 77 per cent.
"Just as we are falling towards the tail of the OECD average incomes chart, we are also slipping down the optimism ladder," Sherwin said.
"At the moment we're up against a cooling economy, but one that still has the Reserve Bank worried about inflation and indicating that it won't lower the official interest rate in the near future. And that will have had a bearing on businesses' outlook."
The results could change quite rapidly, he added.
"But I think that we're going to need some quite significant issues to change that and interest rates going up is sending the wrong signal."
OPTIMISTS
India: 95 per cent
Philippines: 95 per cent
Vietnam: 87 per cent
Singapore: 84 per cent
Hong Kong: 82 per cent
Poland: 78 per cent
Australia: 77 per cent
China: 77 per cent
Global average: 42 per cent
New Zealand: 30 per cent
Source: Grant Thornton
