NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Liam Dann: We're in good shape, but must stay prepared

Liam Dann
By Liam Dann
Business Editor at Large·NZ Herald·
11 Sep, 2017 06:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Liam Dann with Labour Finance Spokesman Grant Robertson.

Liam Dann with Labour Finance Spokesman Grant Robertson.

Liam Dann
Opinion by Liam Dann
Liam Dann, Business Editor at Large for New Zealand’s Herald, works as a writer, columnist, radio commentator and as a presenter and producer of videos and podcasts.
Learn more

Business leaders are upbeat about their prospects for growth in the coming year and that is good news for the economy.

More than half, 56 per cent, expect to authorise more capital expenditure - just 12 per cent expect to spend less.

Similar numbers expect to increase staff as opposed to cutting back.

The levels of confidence spike even higher on expectations around technology investment, where two-thirds expect to spend more, and on revenue and profit growth.

Those last two may just reflect a healthy degree of optimism about their own business operations, but some 75 per cent of respondents expect to see profits grow in the next 12 months and 82 per cent expect revenues to grow.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

That kind of positivity is hard to ignore.

The broad confidence about the business outlook fits with other economic indicators including high level expectations that solid growth can be maintained for at least a couple more years.

In his final speech last month, outgoing Reserve Bank Governor Graeme Wheeler outlined strong prospects for the New Zealand economy.

"In the absence of major unanticipated shocks, prospects look promising for continued robust economic growth in New Zealand over the next two years," Wheeler said. "The greatest risk we face at this stage relates to the inflated global asset prices and the continuing build up in global debt."

In other words we're in good shape but need to stay prepared. Sooner or later the New Zealand economy always gets walloped by an external shock.

Discover more

Opinion

Why aren't food prices an election issue?

16 Sep 05:00 PM
Economy

What's the most important economic stat?

15 Sep 10:19 PM
Opinion

Dann: Ten things for govt to worry about

23 Sep 04:01 PM

There is certainly a sense that this is the right time to invest in the future. The kind of extended period of economic stability we are seeing is a rare thing.

Already there are those in the investment community raising concerns about equity bubbles and pondering when we may see the next financial crisis.

Advertisement
Advertise with NZME.

Part of that may just be timing.

We're now a decade on from the credit crunch and the start of the global financial crisis. We're also approaching the 30-year anniversary of the 1987 crash.

With both Wall Street and the local NZX-50 on historically long bull runs and still breaking records it is not surprising some old investment hands are pinching themselves.

This view comes through in the global risks identified by business leaders in the Mood of the Boardroom survey.

They are definitely more nervous about the global economy than they are about the local economy.

On the local front the biggest risks identified are all what could be described as growing pains.

Advertisement
Advertise with NZME.

Auckland congestion and inadequate transport infrastructure top the list of domestic concerns.

Time stuck in traffic is clearly being seen as a direct cost and a drain on productivity for many businesses.

Other domestic pressures that were rated "concerning" included growth pressures in Auckland, housing unaffordability and labour and skills shortages.

These concerns all point to an economy starting to bump up against capacity constraints.

But one can almost hear the voice of Finance Minister Steven Joyce already, pointing out that if you are going to have problems, then these are the right kind to have.

Globally though things look more serious with issues such as nuclear war, terrorism, protectionism, and Donald Trump's presidency, all featuring as major concerns.

Advertisement
Advertise with NZME.

Ultimately, cyber security comes through as the number one concern - perhaps driven by publicity about highly disruptive ransomware attacks that spread out of North Korea in May and the Ukraine in June.

The Chinese economy also features as a concern for many business leaders and, in conjunction with fears about Trump, US trade border taxes and protectionism, it offers a reminder of just how vulnerable New Zealand is to a trade war.

Regardless, when we look at the sphere of business over which we have some control, it seems clear the mood in the boardroom is relatively upbeat.

Business leaders see an opportunity to invest for growth now while the going is good.

In a sense, business appears to be moving into a more expansive mode in tandem with Government. Whether it's Labour or National-led, we are going to see economic stimulus based on the campaign trail promises so far.

That more-expansion, strategic view, with a focus on investment, may even be influencing the political outlook of some - making them more open to the prospects of a change in government.

Advertisement
Advertise with NZME.

Nine years in, National risks looking tired. They still have natural allies in the business world but the challenge for Bill English and Joyce is to convince them they have refreshed their suite of policies and aren't just set to cruise control.

For Labour the challenge with business is always to reassure on economic management.

An appetite for fiscal stimulus there may be, but big spending promises, new taxes and regulation that wraps business in red tape is unlikely to sit well in the boardroom.

But if Grant Robertson can convince people that Labour is still a party of economic growth, then we could be in for a very tight race on September 23.

The Herald's Mood of the Boardroom 2017 Election Survey attracted participation from 118 respondents. The results were debated this morning by shadow finance spokesman Grant Robertson and National's Finance Minister Steven Joyce.

Save

    Share this article

Latest from Business

Premium
Property

Watch – 'The big question': Building expert on New World Victoria Park's future development potential

19 Jun 04:00 AM
Premium
Retail

Kathmandu owner forecasts weak earnings outlook

19 Jun 03:36 AM
Premium
Business|small business

Controversial Kiwi start-up, once worth $38m, folds in New York

19 Jun 02:37 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Watch – 'The big question': Building expert on New World Victoria Park's future development potential

Watch – 'The big question': Building expert on New World Victoria Park's future development potential

19 Jun 04:00 AM

'Apartments on the site and more than likely offices' – Andrew Moore, CMP Construction.

Premium
Kathmandu owner forecasts weak earnings outlook

Kathmandu owner forecasts weak earnings outlook

19 Jun 03:36 AM
Premium
Controversial Kiwi start-up, once worth $38m, folds in New York

Controversial Kiwi start-up, once worth $38m, folds in New York

19 Jun 02:37 AM
Stronger-than-expected GDP signals no rate cut in July

Stronger-than-expected GDP signals no rate cut in July

19 Jun 02:01 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP