Financial Performance and Remediation Update
NEW ZEALAND ECONOMY
ECONOMY HAD SOLID MOMENTUM BEFORE Q3 LOCKDOWN;
LABOUR MARKET STRENGTH CONTINUED INTO Q3¹
STRONG DAIRY FARM VIABILITY
($NZ billion, chain prices)
(%)
70
NZ GDP
6.0
Unemployment rate
8.40
7.74
99
5.0
66
4.0
62
62
5.85
3.0
58
2.0
54
1.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
50
0.0
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21
Jun-19
Mar-20 Dec-20
Sep-21
3
Final Dairy Price
-Assessed average cost of production (per kg) 4
IMPACT OF LATEST LOCKDOWN: WHILE SMALLER THAN IN 2020 STILL LARGE; RECEDING AS RESTRICTIONS EASE²
Total card spending (first four weeks of year = 100)
120
170
150
1st nationwide lockdown (2020)
Auckland Alert level 3 (2020)
130
2019
110
90
2021
70
2020
50
30
01-Jan
26-Feb
23-Apr
18-Jun
2021 lockdown
(start 17 Aug)
13-Aug
08-Oct
(1) Source: Refinitiv, Statistics NZ
03-Dec
2
(2) Source: BNZ; weekly card spending by BNZ customers through New Zealand merchants. This includes all credit and debit card transactions plus EFTPOS card transactions. Transactions
include spending less any refunds. Spending data has been indexed to 100 in the first four weeks in each series. Dates displayed are for 2021 (2019 begins week ended 4-Jan, 2020 3-Jan).
(3) Source: Fonterra (milk price) FY20/2021 final price of $7.74 p.kg includes dividend of $0.20 p.kg. FY21/22 forecast payout ratio of $8.40 p.kg is mid point of current forecast payout range
(4) Source: Dairy NZ estimated cost of production
National
Australia
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