Inflation, OCR, and closures: a look at New Zealand’s economy in 2024 - The Front Page

Finance Minister Nicola Willis arriving for her presentation to the HYEFU lock-up at the Treasury in Wellington. Photo / Mark Mitchell

The economy has been uncertain for quite some time, and 2024 was no different.

Over the last year, we’ve seen some improvement.

In October, the annual rate for inflation had fallen from 3.3% to 2.2%. The Official Cash Rate ended the year at 4.25%.

Elsewhere, the news hasn’t been so positive.

The country’s gross domestic product contracted 0.2% in the June quarter, just missing a technical recession.

Job cuts across multiple sectors have seen Jobseeker benefit numbers surge to over 200,000.

Government books released this week show that it’s unlikely we’ll return to a surplus until 2029 - about a year later than originally anticipated in this year’s Budget.

So what’s going on in our economy? And how soon until we start to see some change?

Back in May, The Front Page spoke to Herald business editor at large Liam Dann about Finance Minister Nicola Willis’ first Budget.

In November, as signs the economy wasn’t performing as well as it could be became clearer, the Reserve Bank cut the Official Cash Rate to 4.25%.

The Front Page spoke with Simplicity chief economist Shamubeel Eaqub for his analysis of how things had performed since the Budget – starting with cuts to home loan interest rates.

Job losses were a big story this year.

Notably, much of the public sector reduced staff to meet Government savings targets.

The news industry contracted significantly, with the entire Newshub brand shutting down, many community newspapers closing, and a couple of long-running current affairs shows going off air.

We also saw notable closures across the retail and hospitality sectors.

In June, The Front Page spoke with First Retail’s Chris Wilkinson about the changing face of retail after Auckland icon Smith and Caughey’s announced its closure – which eventually was scaled back to a reduced physical footprint on Queen St.

After a series of high-profile restaurant closures, The Front Page discussed where to next back in August with Herald deputy lifestyle editor Johanna Thornton, and AUT hospitality and tourism professor David Williamson.

One New Zealand company that enjoyed success this year was RocketLab.

The country’s premier space business celebrated its 50th launch in June, around the time the coalition Government ramped up investment in the aerospace sector.

The Front Page spoke with the company’s founder, Sir Peter Beck, about where to next.

Amongst the policies of the coalition Government, reform of the Holidays Act is one of the many areas in the spotlight.

It’s the responsibility of Workplace Relations Minister Brooke van Velden to oversee this.

This month, she has directed officials to change the proposed direction of the reform based on consultation feedback.

But in June, The Front Page caught up with her on what her plans are for sorting out this part of the economy.

In July, Housing Minister Chris Bishop announced that the Government wants to “flood” the market with more houses to improve growth and bring down prices – going against Kiwi tradition.

To discuss how this might work, The Front Page spoke with Opes Partners economist Ed McKnight.

Finally, no wrap of the year in Kiwi business would be complete without touching on the saga of the Du Val Group.

The home of company founders Kenyon and Charlotte Clarke was raided by police in early August as part of investigations into the Auckland apartment developers.

Various court hearings have followed over recent months, and a court case between the Financial Markets Authority and PWC against Du Val and the Clarkes is set for June next year.

The Front Page caught up with Herald property editor Anne Gibson in late August when Du Val was placed into statutory management by the Government.

Listen to the full episode to hear more about the year in Kiwi business and economy.

The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.

You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.