According to the survey done by an independent agency, the business of New Zealand grew at 2 percent by the end of June. It is expected that the interest rates are expected to remain at some historical low points until early next year.
As per the quarterly survey of business opinion from the New Zealand Institute of Economic Research (NZIER), the businesses in New Zealand were responsive and optimistic. This has been achieved even though the growth of domestic trading activity decreased from 10 percent to 4 percent.
The Chief Executive of NZIER, Jean-Pierre de Raad, said that many businesses are investing more and also hiring more workers, which shows the continued phase of recovery in the economy. He also said that the recovery is in the initial stage due to a general shortage of capacity or labour. In the building and manufacturing sector, the economic activity was going strong due to rebuilding of the region battered by earthquake, Canterbury. Even, the sales of different services in the service sector are showing a positive growth.
It has been noted in the survey that prices and costs of different products along with services have remained at historical modest levels. 30 of the respondents contacted for this survey said that they are expecting an increase in the interest rates. With the bustling and wide economic activities happening in the Canterbury region, New Zealand is experiencing a growth rate that offers wide employment opportunities for immigrants from different countries.
Since March 2011, the OCR has been held at a historic low of 2.5 by the Reserve Bank of New Zealand.