More good news

While David Cunliffe suns himself on holiday, contemplating how he will hide his rich prick lifestyle from the seething masses, still more economic good news continues to roll in.

Labour and the Greens are going to have a real problem in fighting against this avalanche of good news and government likely to ask voters why they would put everything at risk.

New Zealand has begun an economic boom that could drive its currency past Australia’s for the first time in four decades, HSBC Bank Australia says.

The bank rates the rebuilding of earthquake-damaged Christchurch – one of three things driving the economy – as an economic force as important to New Zealand as the resources boom of the last decade was to Australia’s economy.

“New Zealand is set for a strong 2014, with the economy already firing on all cylinders,” Adam Richardson and Paul Bloxham of HSBC Bank Australia say in a report.

New Zealand is likely to outperform almost all other OECD economies in 2014, except Chile, Israel and Mexico.

HSBC forecasts gross domestic product (GDP) will expand by 3.4 per cent in 2014, up from 2.8 per cent in 2013.

The New Zealand dollar will rise to 87 US cents by the end of 2014. It was 82.46 US cents at 5pm on Friday. 

“It may surpass parity against the Australian dollar for the first time in four decades,” the report says.

The NZ dollar was at 92.63 Australian cents at 5pm on Friday.

The Reserve Bank of New Zealand (RBNZ) estimates the reconstruction activity in Canterbury will total $NZ40 billion, equivalent to 20 per cent of annual GDP.

“To put this in context, this scale of activity is similar in terms of its share of the economy to the resource investment boom Australia experienced through the last decade – a factor that has dominated the economic landscape in Australia recently,” the HSBC economists say.

New Zealand’s role as a provider of 60 per cent of China’s dairy imports will also drive growth.

A third driver is a housing boom, which is expected to continue.

The economists do not expect the general election this year to upset the economy.

  • Pete George

    “The economists do not expect the general election this year to upset the economy.”

    But a Labour-Green-Mana result might, eventually.

    • ex-JAFA

      “might, eventually” – Correction: “will, immediately”.

      • Edwin Wigmore

        Amen to that. Just have to hope there is enough sanity in the country to not let the wreckers back in.

  • Patrick

    Don’t be so smug, as long as the likes of Norman are given airtime & their commie agendas are streamed into the homes of Kiwis every day by the media organisations stacked full of journalists sympathetic to the cause there stands a real possibility that enough naive fools will vote for a party that dresses themselves up as caring for the environment. When in reality they care more for their brand of socialism than anything else.
    What is required is a concerted campaign – a vote for Labour = Norman for Minister of Finance = Venezuela in quicktime. Kiwis need to wake up to this real & present danger.

    • Night Stick

      I encourage everyone I meet to click on WO.

    • WABloke

      “Kiwis need to wake up to this real & present danger” They certainly do; stop being so gullible and compliant you people! Think for yourselves!

    • Edwin Wigmore

      Bang on Patrick. Couldn’t agree more.

  • conwaycaptain

    OH111 woe woe and thrice woe!!! A tearing of garments and gnashing of teethe in the Labour and Greens caucus rooms.
    We’re doomed!!! Wer’re doomed!!!!! Captain Cun(t)life!!!!
    We’re doomed Sgt Norman

    • Kimbo

      ….unless we play the “unequal distribution of wealth” (i.e., class warfare and politics of envy) card!

      • Patrick

        That will be the Left’s playbook – the rich are getting richer at the expense of the poor. All John Key’s “rich prick” mates are making money & it ain’t fair. Helen started the fair & equal society nonsense & Cunliffe, Norman et al will be whining from sun up to sun down about it.
        Class warfare, the politics of envy will be the tactic, just you watch.

        • Kimbo

          They already are.

          Did you see this incoherent piece of crap today?

          http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=11184864

          Rich nasty John Key and Paula Bennett to Nigella to Russell Packer.

          If you can pick a coherent thread in that, good luck!

          But if merited the headline, “Those rich MPs could at least share the wealth”. And drew the usual malcontent comments

    • Night Stick

      Saved at the last minute by a fat kraut.

  • Mr_Blobby

    A. How often do these clowns get it right and B. 3.4%, is that before or after inflation and how does it compare with the double digits of growth Nations.

    • Mr_V4

      Blobby, countries with those double digit rates of growth, also have 9% inflation, so the real rate is still lower. If you acheived a historical rate of growth of real income growth per capita of 2-3% you would be doing very well as an economy.

  • Mr Sackunkrak

    The only plausible contingency that would totally fuck our economy beyond repair is an election result that leads to a Labour/Green/Mana/NZ First government.

    • Mr_Blobby

      Is anybody seriously contemplating climbing into bed with John Hatefield or is it just media speculation.

      • Mr Sackunkrak

        Yes, this punter is. Regrettably I believe the racist thug will pick up a few Maori seats next time round and cause a small over-hang of his own, making him necessary to Labour.

  • skyshore

    Her’s another contender. The MSM enabling propaganda to criminals again. When is the government going to extradite him? Not holding my breath.

    “Dotcom keeps hinting about NZ politics

    AAPJanuary 12, 2014, 1:18 pm

    Flamboyant internet entrepreneur Kim Dotcom is talking up his plans for a new political party ahead of its launch.

    “My political party will activate non-voters, the youth, the internet electorate. We are going to make politics exciting. More on January 20,” Dotcom tweeted on Sunday.

    The German businessman, who is fighting extradition to the US on internet piracy charges, revealed plans for a political party last September.

    At first, Dotcom said he could not be elected to parliament because he did not have citizenship.

    He later told The Washington Post his
    lawyers had been checking New Zealand electoral law.

    “They found that if I’m a permanent resident of New Zealand who’s lived here for more than a year and is a registered voter, which I will be in November, you can run for office,”Dotcom said.

    He has previously tweeted that his policies will include a new submarine cable for New Zealand, fair internet pricing and no more data caps on internet users.

    January 20 is the second anniversary of his arrest in New Zealand on US copyright and money-laundering charges relating to his former Megaupload website.

    He has since launched a new file-sharing website, Mega.com.

    New Zealand will have a general election in 2014

    • John

      The “dotcomdon’tletthemextraditemetoamerica” party I hear.

      • skyshore

        Thought he might interlope on Key and Obama in Hawaii on holiday , but no……..

    • Patrick

      Can a convicted criminal run for parliament? He has convictions for fraud so is totally unsuited to be an MP.

    • OneTrack

      the “internet electorate”. ffs

  • Mr_V4

    If John Key is the NZ equivalent of the Howard govt, beware what comes next …

  • Blokeintakapuna

    Horribly, horribly inconvenient for them this is…

  • Edwin Wigmore

    Went rushing to the NZ Herald to read this great story, and to my absolute astonishment (not) they hadn’t published it.

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