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4:11 pm, January 30th, 2026 - 27 comments
Categories: class war, covid-19, economy, employment, poverty, uncategorized, unemployment -
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There is no evidence of immediate improvement in our economy, or of this government improving it.
At the height of the COVID pandemic and our most acute economic crisis in two decades, company liquidations+receiverships+voluntary administrations were 1379+78+18: 1,475.
The 2025 total of business failures was 3,080.
Lending to New Zealand businesses large or small is low in total and is at the same rate as in 2017.
The strongest economic accelerant this term will be the one-off rural cash injection from the return of shareholder cash following the completion of the sale of Fonterra brands. Those brands took 100 years to build, and their sale effectively shrinks the entire Fonterra business by 20% and it has eradicated any remaining global ambition. Our second largest company – Fletcher Building – has now also sold all its construction and building and shrunk itself even further.
In 2022 the size of the New Zealand economy was NZ$413.8 billion. In 2025 it was about $440 billion, and on average not growing at all over this political term. The South Island with about 23% of the population has strong economic growth, and the other 77% on average is static or falling.
There were 116,000 new cars sold here in 2022, and that’s dropped about 20% to about 87,000 last year.
Poverty has now risen to the point where about 156,000 children and young people are missing out on life essentials and live in poor housing, which is the highest level since 2015.
The multi-decade engine room of small business finance – home mortgages – have been crippled by house prices that have remained on average static since June 2023. Unless you live in central Otago.
Inflation is running over 3%. Bank lending interest rates will continue to rise in 2026.
In September 2022 the headline unemployment rate was 3.1%, and it’s now 5.4% and rising.
There have been no new listings of companies on the New Zealand Stock Exchange since the end of 2022.
Of the 149 Fast Track projects, the number that have started construction is 1.
Within this near-zero growth economy, during this term wealth has got ever-more concentrated in the hands of fewer and fewer people, with the top 10% of New Zealanders now having 48.5% of all wealth and the bottom 50% having 6.7%. Those with family trusts hold 17.7% of our wealth. Pacific peoples now have a media net worth of $26,000, compared to European/Pakeha of $222,000 and rising.
40% of us now have not even $1,000 for an emergency let alone any savings.
ACT, New Zealand First and National have not improved our economy. They have made it worse.
Thanks Ad.
Along with that, they killed equity for working women, and bought back many punitive rules for work and welfare. They halved the Government's contribution to Kiwi Saver.They also say "Don't expect buy-outs after storms, which has Insurers withdrawing from areas (West Coast) . The Health system in the Public sector is surviving on worker's good will while it is defunded by Levi, and the Private Health Sector gets huge hand outs. Similar moves are occuring in Education.
We have to vote National Act NZ First out this year. So Enrol and Vote.
How important is this claim to your argument?
https://www.rnz.co.nz/news/business/487885/survey-finds-39-percent-unable-to-access-emergency-funds-within-a-week-without-going-into-debt
That study used $5,000 as the amount, not $1,000. So there must be another source for the claim in the original post.
Can't find a NZ survey that uses a financial resilience threshold of $1,000.
Still, given results of the $500 (33%, in May 2024) and $5,000 (60%, in 2023) surveys, perhaps a reasonable guess for $1,000 would be somewhere between say 35% and 45%, with perhaps a slight upward adjustment for 2024 – 2026.
Oops, shouldn't have trusted that Loan Smart summary.
https://loansmart.co.nz/emergency-fund-101-how-much-should-you-really-have/
The “another survey” actually found that 39% of Kiwis don’t have $5000 saved in case of an emergency. So, the % for a $1,000 threshold probably lies between 33% and 39%, with perhaps a slight upward adjustment for 2024 – 2026.
Hey Gareth, it's just facts. Argue with yourself. If you're well off, congratulations but it won't be from anything this government has done.
Could you please give a link to the study that showed 40% of New Zealanders don't have $1,000 for an emergency?
See: Retirement Commission: money matters 2025 The Power of Emergency Savings.
In 2021 it was 40% its now 44%.
That study just refers to "savings put aside for emergencies or unexpected expenses", and doesn't mention any dollar amount. There’s also a big difference between not having money, and just not actively putting it aside for emergencies. So again, what's your source for the specific claim with the $1,000 amount?
Oh for goodness sake Gareth. You can get all pendantic about specific links, but how about you consider that fact there are a lot of people out there who simply have no money for emergencies (yet alone food, rent, power).
Does that concern you at all??
This is not something that I see as a negative. House prices are ridiculously over-inflated, and have been for the last decade at least.
If we have 10 years of effectively no growth in house prices – combined with even modest growth in salaries – then the prospect of owning a home, without a 40 year mortgage – may be in reach of ordinary Kiwis again.
But I don't see taking the brakes off house price inflation, in order to fuel risky small businesses (most fail) – is an economic gamble which benefits NZ.
Unfortunately it's the way our economic wheels have gone round for a very long time. And you're dead right about the distortions it causes in our housing market. Lenders put quite high premiums on lending to business where the loan is secured against the business, secure it against your house and you pay residential mortgage rates (maybe a premium if it's getting really dodgy, but still cheaper)
All caused by our shallow, to near non-existent capital markets and near non-existent savings. Imagine where we would be if Labour's 1975 superannuation scheme had happened, there'd be multiple funds looking for businesses to invest in. But unfortunately a political party convinced NZ that was communism, and most of the country voted for them. So sad, but generations have and will pay for that stupidity.
We've now had KiwiSaver for nearly two decades – and there are multiple funds, with substantial amounts to invest. However, they are not (by and large) investing in small business.
The issue is that Kiwi small business start-ups are basically a not very good risk (most fail); which is why banks make the loan contingent on a 'hard' asset backing the loan.
Tiring..
you want a cash amount.
ASB 28 Oct 2021
I mean. Lift your index finger it's not controversial
Financial Services Council Money and You series look that up April 2023, and 2024 4 Sept 202RNZ April 13 2023
Spinoff June 12 2024
Stuff 27 Oct 2021
ASB April 14 2025
October 2021 and April 2023 are during the Labour government, so they're irrelevant to criticism of the current government. The ASB study did have a figure of $1,000, but that only surveyed ASB customers, not the New Zealand population. I'll look into the others, but it's a bit odd to give a specific percentage and dollar amount, and then seven different sources. Don't you remember which specific source you got those numbers from?
Are you a tedious troll? Do you have a genuine point to make that adds to the conversation or are you only here for lazy point-scoring and vexatious nit-picking?
Ad mentioned ASB 14 April 2025.
Guess what I found there?
https://www.asb.co.nz/documents/media-centre/media-releases/kiwi-gen-z-under-pressure.html
That’s the same 44% that Ad gave you before.
As to the validity of the ASB data:
You’re one straw short of a Mod note.
The claim in the original post was:
The ASB survey was limited only to ASB customers, which is not representative of the New Zealand population, and can't reasonably be referred to as "us".
[Okay, you insist on acting like a lazy vexatious nit-picking troll. You’re in Pre-Moderation until we see that you make an effort to comment here in good faith and want to participate in genuine robust debate or you take too long and we lose patience with you and send you to the Ban List, quite possibly until 2 months after the General Election. Lift your game; the choice is yours – Incognito]
Mod note
What's the basis for your assertion that ASB customers are not representative of the Aotearoa NZ population?
This is fun
ANZ customers might be the most representative of New Zealanders.
I recommend TSB and the Cooperative Bank
https://www.tsb.co.nz/
DNFTT
Those new car sales figures are interesting…..indicative of an economy in real trouble.
And who would have predicted those house price falls. When inflation is taken into account that is a big correction. But I agree with Belladonna above that this is necessary.
The new car sales get more interesting when you think about rental fleet replacement / build up. Top selling car goes from R.anger to RAV4, who buys a new RAV for a family car, they'll be nearly all, if not all rentals. Figures are even more dire than first glance. Drop in Ranger sales, things aren't good in tradie land.
and yet…….
https://www.nzherald.co.nz/business/big-cities-drive-up-consumer-confidence-in-latest-survey/CL6CIVRHSRCZVIHOL3MLUQHCII/
My nephew tells me the company he works for is very busy now and he is being run off his feet, however, the company he works for has 12 employees now whereas 18 months ago it had 23…….
Green shoots up my fingernails, more like…
The Unemployment figures don't reflect the reality of the slowdown in construction.
Self employed subbies are finding big gaps between jobs. They are fishing or golfing more, waiting for an upturn. Others are going to Australia.
Bigger companies are not replacing workers who leave for Australia or whatever. They have staff sitting in their cabs or snoozing in the smoko room. There is very little overtime and less Saturday work. Construction workers are open to voting for Labour.