• Skip to content
  • Skip to navigation
Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Namibia
  • Nigeria
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Bahamas
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Dominica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • Turks and Caicos Islands
  • United States
  • Uruguay
  • Venezuela
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • North Macedonia
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Lebanon
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
Grant Thorton Logo

Grant Thornton Logo Grant Thornton logo

  • Meet our people
  • Insights
  • Services
  • Industries
  • Careers
  • Locations
  • Business advisory services
  • Financial advisory services
  • Tax
  • Audit
  • Operational advisory
Business advisory services Home
  • NZTE support for businesses impacted by COVID-19
Financial advisory services Home
  • Asia Services Group
  • Business valuations
  • Capital markets
  • Complex and international services
  • Corporate insolvency
  • Debt advisory
  • Expert witness
  • Financial models
  • Forensic and investigation services
  • Independent business review
  • IT forensics
  • Mergers and acquisitions
  • Raising finance
  • Relationship property services
  • Restructuring and turnaround
  • Transaction advisory
Tax Home
  • Corporate tax
  • Employment tax
  • Global mobility services
  • GST
  • International tax
  • Research and Development
  • Tax compliance
  • Transfer pricing
Audit Home
  • Audit methodology
  • Audit technology
  • Financial reporting advisory
Operational advisory Home
  • Business architecture
  • Internal audit
  • IT advisory
  • IT privacy and security
  • PCI DSS
  • Process improvement
  • Procurement/supply chain
  • Project assurance
  • Risk management
  • Robotic process automation (RPA)
  • Energy and resources
  • Financial services
  • Food and beverage
  • Health and aged care
  • Media and entertainment
  • Not for profit
  • Professional services
  • Public sector
  • Real estate and construction
  • Grant Thornton New Zealand
  • Press releases
  • 2012
  • NZ businesses showing signs of optimism

NZ businesses showing signs of optimism

05 Jul 2012
  • Press releases
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

Growing signs of an economic turnaround are highlighted by the attitude of New Zealand businesses in the latest Grant Thornton International Business Report (IBR) for the second quarter of 2012.

The survey suggests that Kiwi businesses have growing confidence in the economy over the next 12 months, the majority are expecting an increase in turnover/revenue, and profitability is tipped to grow.

Paul Kane, a Grant Thornton New Zealand partner, said the IBR results provided a heartening indicator that better economic times are ahead and were in contrast with the global market.

“The general message is that New Zealand businesses think the worst is behind them. They’ve gone through the pain of restructuring over the past two or three years and are now poised to reap the benefits of that. It’s also interesting to note that the more optimistic mood is shared across both North and South Islands.”

The IBR reveals that half the businesses surveyed are slightly optimistic about the country’s economy over the next year while the majority are confident of turnover/revenue with 64.80% of North Island businesses expecting an increase and 74.50% in the South Island. Anticipated improvement in profitability was also signalled; 72.2% of northern businesses tipping a rise and 61.70% in the south.

Kane said the higher figure in the South Island reflected the anticipated growth around the Christchurch rebuild and the spin-off for the construction sector, in particular.  

Good news on the employment front is that 37% of North Island and 40.40% of South Island businesses expect jobs to increase but the availability of skilled workers is a concern, especially in the south where 34% saw it as more than a moderate issue versus 24.10% in the north.

“We sometimes hear a lot about unavailability of skilled workers in New Zealand but the reality is that the  situation isn’t too bad although, again, Christchurch will buck the trend given the demands associated with the rebuild,” Kane said.

Cost of finance was of low concern by 48.10% of North Island businesses and 55.30% in the South Island while very few are picking a shortage of long term finance, at 3.70% and 2.10% respectively. 

Kane said New Zealand’s more optimistic findings made interesting reading against international results.

“By comparison, on the global arena, business expectations for revenues, profits and employment remain at or below  levels observed 18 months ago. Global economic uncertainty is weighing on  short-term business growth prospects.”

The global economy is further highlighted by the sharp rise in the proportion of businesses in the Eurozone, China and the US, citing reduced demand as a constraint on expansion – at 44% in China, the highest level since 2009.

New Zealand businesses were asked if public private partnerships (PPPs) are the way of the future to develop New Zealand and its infrastructure. With only 16% against PPPs as a way forward, Kane said it was clear that business wanted less involvement from government to  pave the way for private enterprise.

However, the attitude towards privatising assets was less clear cut with opinion more evenly divided; 34% of New Zealand businesses were against such a move, 30% said perhaps, and 36% were in favour.

Further enquiries, please contact:

Paul Kane
Partner
Grant Thornton New Zealand
D +64 (0)9 308 2576
M +64 (0)21 277 8835
E paul.kane@nz.gt.com

  • Follow us on Instagram
  • LinkedIn icon
  • Twitter icon
  • Facebook icon
CONNECTclose
  • Contact us
  • Make an enquiry/submit an RFP
  • Meet our people
  • Careers
  • Alumni
  • Locations
ABOUTclose
  • About Grant Thornton
  • Insights
  • Press
LEGALclose
  • Privacy
  • Disclaimer
  • Sitemap

© 2021 Grant Thornton International Ltd (GTIL) - All rights reserved. "Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

    • EN