Business Update – 11 May 2022
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Price freeze in effect at Countdown supermarkets
Countdown is freezing prices on 500 winter staple items in response to what’s being called a cost of living crisis. As of May 9, prices on these items will remain the same over the winter months.
Air NZ making strides in its recovery
Air New Zealand has successfully completed its $1.2 billion equity raise. The airline has now strengthened its position in recovery from the pandemic and is able to repay its government loan.
Unemployment rate remains low, wages rising
The jobless rate has stayed at a record low of 3.2%, and wages have risen at their fastest rate in a decade. Experts warn that despite these positive signs, more Kiwis are falling behind due to inflation.
NZX opens 1 percent lower after Wall Street plunge
The New Zealand stock exchange opened down 1.05 percent on Friday, mirroring markets around the world after Wall Street had its biggest one day fall since 2020. Tech stocks led the sell-off.
Bear market for housing
Westpac is now predicting a 15% dip in house prices in the next two years, taking a bearish stance. While the dip is significant, it would bring prices in line with where they were at the start of 2021.
Newly open tourist market slow to bring jobs to Māori
While unemployment has remained low among the general population, Māori unemployment rates remain high at 6.3%. Economists urge patience as it will take some time for the tourism sector to recover as international tourism opens up.
Winter Energy Payment is now active
The Winter Energy Payment started on May 1 and lasts until October 1. Application isn’t necessary – those who are eligible will automatically receive the payment. Find more details here.
Individual income tax process changes for 2022
Income tax assessments will start arriving at the end of May, and there are a few changes to individual end of year processes. Review the changes here.
Netflix and mobile phone contracts last to go when cutting costs
A new survey asking Kiwis how they’re dealing with inflation found that eating out and travel are the first luxuries to go. 40% of respondents said they are taking shorter showers to try and slash energy costs.
New Zealand sets 14-year target for greenhouse gas emissions
The emissions budgets will be debated in parliament this week and are part of a program to achieve net-zero emissions by 2050. Details will be announced May 16.
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