The recent credit downgrade in the US sent shivers down the spine. The largest economy in the world is struggling - what does that mean for the rest of us?
Three years ago it might have meant even more bad news, as New Zealand's economy was not in any shape to handle the global credit crisis and the resultant pressure on banks and financial institutions.
It's a different story this time around.
After three years of hard work, extensive restructuring, cost cutting and aspirational economic focus, New Zealand is much better placed to cope with a US or a European downturn. We're getting on top of debt by keeping it below 30 per cent of GDP and we should be back in surplus by 2014/15.
The key word here is "aspirational". It's not enough that budgets were trimmed and savings were made. New Zealand had to find innovative ways to bring growth back to the books.
Innovation like the $1.35 billion being spent by central Government on broadband, which will see schools, hospitals and 90 per cent of businesses leapfrog into ultrafast broadband speed by 2015.
It's that same kind of "outside the square" thinking that locally is also starting to make a difference. From award-winning beer to recycling forestry waste, locals have shown what is required to make the Rotorua electorate vibrant.
Rotorua has a large community of industries which export. Despite volatile exchange rates and foreign markets still suffering economically, most of these businesses are doing well. This is the result of their hard work in finding new markets and developing their businesses to fit those markets and strong commodity prices for things such as forest products.
With a central Government programme focused on rebalancing the economy towards savings and exports, it's good to see exports in the March quarter up almost 1 per cent and imports down 2.4 per cent, reflecting our own local experience.
The recent Labour Market Survey also held positive signs for the economy, with a steady rate of 6.5 per cent unemployment for the June quarter, and a slight drop in unemployment figures over this time last year. This reflects the strengthening economy, and anecdotal evidence shows this trend is also reflected in Rotorua's experience, with rental demand and job inquiries on the rise.
And this can be done with a good respect for the environment. SCION, for example, are doing great things in the region and are continuing to look at ways of taking up opportunities using low carbon, clean technology and high energy industries which are on our doorstep.
The electorate is leading the way in geothermal energy extraction and usage, from Taupo through to Kawerau. This, alongside the broadband, gives us a leading edge in attracting further industry into our region. And the Government is fully supporting all this as it happens.
This leads to an increase in employment across the sectors. More jobs in industry, then into retail and hospitality, which is good for the central business district of Rotorua.
All this is coming together in time for us to show ourselves off to the Rugby World Cup visitors. With three pool games here, we have time to show our business acumen to these visitors.
I urge local businesses to adopt our visitors - not just to talk about the great game, but also to show them how innovative, clean and green we can be. Let's use the opportunity to improve on the hard work already being done for our economy.
There is still work to be done, but the time is right for those with bright ideas and energy to step up and put their ideas into action, to make sure the Rotorua electorate becomes a place we all aspire to live, work and play in.