Economy

IMD’s annual World Competitiveness Yearbook shows astonishing results

IMD’s annual World Competitiveness Yearbook shows astonishing results

It has been learnt that New Zealand, which was on 18th place initially on the IMD’s annual World Competitiveness Yearbook, has risen to 15th now.

IMD ranked 57 economies, in which the US is still top while Hong Kong has switched places with Singapore to be second and is swiftly closing the gap with the US. Furthermore, fourth rank was still maintained by Switzerland from last year.

Ageing population issue urged to be addressed by Government

Wayne Swan

A retirement investment specialist believes when it comes to the retirement policy, New Zealand should take a leaf out of Australia's book.

Australia's Treasurer Wayne Swan made an announcement in this month's budget that by 2023 the age a person is eligible to receive a pension will increase from 65 to 67.

In addition, retirement tax benefits for higher-paid individuals will be decreased and to pay for a weekly increase for present pensioners the Government would discontinue matching contributions to low and middle-income earners.

$33m spend explained in NZX prospectus

NZX

To know the real motives behind NZX's $33 million spend-up, one should get his hands on its rights issues prospectus details, which includes the controversial purchase of a rural publisher.

As of now, three acquisitions are held underway by the stock exchange operator, which includes electricity and gas market operator M-Co, a 50.1% stake in Australian stock exchange company NSX and Country-Wide Publications.

Services contraction brings gloom for tourism industry

BNZ Capital

During the month of April, activity of services sector deteriorated for the thirteenth month in a row. This latest piece of news has been confirmed by the BNZ Capital-Business NZ Performance of Service Index (PSI).

For the month of April, the PSI was 43.7, which came as the second lowest overall result recorded and 3.4 points below March's level indicating service sector activity continues to shrink.

An expansion in index score of above 50 indicates sector activity was also being seen under pressure.

Pay for 1,000 staff members to be frozen by Air New Zealand

Air New Zealand

A new salary-saving measure has been announced by Air New Zealand to find the way to cope with the recession in the aviation industry without major retrenchment of staff.

For the year starting from the month of July, the salaries of the staff who earn more than $80,000 would be frozen by the airline, a move that will have an effect on around 1000 of the company's 11,000 employees.

Glimmers of hope displayed by manufacturing sector

Glimmers of hope displayed by manufacturing sector

A latest survey has suggested that though last month, the contraction was at its slowest rate since September, still the manufacturing activity continues to shrink in New Zealand.

A seasonally adjusted reading of 43.7 for its performance of manufacturing index was included in the BNZ Capital -- Business NZ April survey of the manufacturing sector.

Though that is higher 1.8 points from March, however it is still 7 points under the previous lowest April figure. It should be noted that any reading below 50 indicates activity is contracting.

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