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Home Business

Businesses cautiously optimistic after change in government

December 4, 2023
in Business
Businesses cautiously optimistic after change in government
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AUCKLAND, NZ - MAY 29:Traffic on Queen street with the Skytower in the background on May 29 2013.It's a major commercial thoroughfare in the Auckland CBD, New Zealand's main population center.

Many businesses report being cautiously optimistic.
Photo: 123rf.com

Businesses are largely cautiously optimistic about the outlook for the economy under the new government.

A survey of more than 300 clients by business advisory Grant Thornton showed just over half were slightly optimistic, while just over a quarter were either slightly or very pessimistic.

Confidence in the government’s ability to support and promote business growth yielded similar results, with just over half feeling somewhat confident.

Business advisory services partner Greg Thompson said the results were to be expected given the government was operating in the new territory of a three-party coalition.

“There was a wide range of areas under the previous government – more and more things were adjusted – in which the impediment really came on business itself,” he said.

“Whether that’s Resources Management Act or changes to employment laws. There was a range of different employee-friendly things that came through which came at the cost of business.”

Thompson said the results came at a time when businesses were recovering from Covid-19 and inflation was increasing.

He said interest rates and inflation were top priorities that businesses felt needed addressing, but companies also wanted the government to tackle red tape.

“This represents a clear need for businesses to have the ability to run their operations more cost effectively and efficiently.

“It also sets a strong mandate for the government to move at pace to provide some clear direction about how they’re going to move the economy from steady as she goes to full steam ahead.”

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/503907/businesses-cautiously-optimistic-after-change-in-government

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