Extreme weather events present fresh challenges for the New Zealand economy - Quarterly Predictions, March 2023

In recent weeks, the northern floods and Cyclone Gabrielle have wreaked havoc across many regions and presented new challenges for the New Zealand economy. The widespread devastation comes at a time when businesses and households were already feeling downbeat. Prior to the extreme weather events, the NZIER Quarterly Survey of Business Opinion showed business confidence already at record lows. Principal Economist Christina Leung says, “Even before the floods and Cyclone Gabrielle, businesses had already been pessimistic about the economic outlook. These extreme weather events recently have added to the woes of many businesses, particularly in the affected regions.”