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Dynamic Business
2025 will be a turning point for Christopher Luxon’s Coalition Government.
His Cabinet will still be toughing it out when it comes to keeping control of the fiscal levers.
The “deep economic turnaround” promoted by the Prime Minister has proved challenging.
He has earmarked next year as the beginning of a strong focus on growth and jobs to deal with the “30-year productivity disease that we have got”. A high-profile Infrastructure Investment Summit early in the year will give a lift to both Government and private sector alike. Particularly, if it ultimately leads to significant international investment in transport projects, renewables and mining. Infrastructure New Zealand’s Nick Leggett suggests asset recycling is one answer.
The Herald’s Dynamic Business report, Towards 2025, explores some transformative technologies New Zealand might pursue to become a more productive economy. It’s notable that New Zealand has slipped down the IMD World Digital Competitiveness rankings, dropping from 25 to 33 in one year. The plain truth is we are not investing sufficiently in R&D.
But as Spark CEO Jolie Hodson points out judicious use of AI in New Zealand business could lead to a huge productivity lift. We report on how Taxi, a fintech startup, uses provisional tax payments as security to offer businesses low-interest loans — at rates far below traditional banks.
When it comes to the environment, Russell McVeagh partner Michael Loan says New Zealand must invest more in electricity generation capacity to meet the demand caused by the electrification of industry and transport. Green hydrogen is promoted as a salve. But it is more complex than that.
Auckland Business Chamber’s Simon Bridges has a welcome focus on the short term, with suggestions on how to spark growth. Elsewhere, economist Cameron Bagrie says New Zealand is at an inflection point. He says we don’t need a sugar-rush upturn. Bagrie says we need better foundations to our economy. And influential political analyst Richard Harman reports that tensions are likely to become more evident next year. Particularly, as 2026 and the election approach.
That’s unlikely to deter Foreign Affairs Minister Winston Peters and Trade Minister Todd McClay who are among the most successful Cabinet Ministers. They have covered the Indo-Pacific this year — but in 2025 will zero in on India.
We are once again proud to showcase, in this report, the winners and finalists in the 2024 Deloitte Top 200 awards.
Enjoy the report.
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