Scoop Links: Forbes Ranks NZ #2 For Business

Thursday, 6 October 2011, 12:59 pm
Article: Scoop Link

The Best Countries For Business
http://www.forbes.com/sites/kurtbadenhausen/2011/10/03/the-best-countries-for-business/

During the run-up to every U.S. presidential election, countless Americans threaten to move to Canada if their preferred candidate does not emerge victorious. Of course, few follow through with a move north. Maybe it is time to reconsider.

Canada ranks No. 1 in our annual look at the Best Countries for Business. While the U.S. is paralyzed by fears of a double-dip recession and Europe struggles with sovereign debt issues, Canada’s economy has held up better than most.

Best Countries for Business - Ranking
http://www.forbes.com/lists/2011/6/best-countries-11_rank.html

[…]

#2 New Zealand
http://www.forbes.com/lists/2011/6/best-countries-11_New-Zealand_CHI010.htm

Trade Freedom (rank) 35
Monetary Freedom 6
Property Rights 4
Innovation 28
Technology 23
Rank-Previous Year 3
Red Tape 1
GDP Growth 1.5%
Investor Protection 1
GDP/Capita $27,700
Corruption 1
Trade Balance -2.3%
Personal Freedom 1
Population 4.3 mil
Tax Burden 21 /
Public Debt As % of GDP 30.3
Market Performance 9

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 1.7% decline in 2009, but pulled out of recession late in the year, and achieved 2.1% growth in 2010. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

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