New Zealand Outperforms Australia in Recession
April 20, 2010 New Zealand Finance
Recent research has suggested that Australian businesses fared worse in 2009 and 2008 than those in New Zealand.
In the recently released April 2010 MYOB Business Monitor report Australian and New Zealand business owners were surveyed for their opinions on the current economic situation in both nations. The report showed that 39 percent of surveyed businesses reported a fall in revenue during the twelve months to July 2009, while only 35 percent of New Zealand firms provided the same response. Commenting on the difference, Tim Reed, MYOB’s Sydney-based Chief Executive, said that the survey shows that New Zealand business showed a great sense of resilience throughout the economic downturn.
The report revealed that 50 percent of New Zealand business owners expected the economy to improve over the course of the next 12 months. Of the 1000 individuals surveyed, 45 percent expected to see improved revenues throughout the year, while 37 percent are not actively looking for advice on how to improve their business’s performance. An encouraging 52 percent of survey takers reported the economic situation making it “easy” to run their business, an only 14 percent claimed it to be “difficult”.
In a negative aspect, New Zealand business owners expected fuel prices to exert the most significant pressure on their operations. Cash flows, interest rates and exchange rates were listed as the next most prominent concerns.