Coasties have faced their fair share of challenges over the past year, with rising costs and high interest rates affecting local families, businesses, and the wider Hibiscus Coast community.

New GDP data from Stats NZ, released today, offers a glimpse into how these economic pressures have played out across the country.

For the June 2024 quarter, New Zealand’s Gross Domestic Product (GDP) fell by 0.2%, signalling the continued impact of the long-running cost of living crisis.

Finance Minister Nicola Willis acknowledged the difficulties but noted that signs of recovery are beginning to emerge.

“Today’s GDP data confirms what we already know – that the economy has been suffering the after-effects of a long cost of living crisis, with the Reserve Bank having to keep rates high to tackle inflation,” said Willis.

While the Hibiscus Coast, like the rest of New Zealand, has felt the strain of rising prices and tight business conditions, the Minister offered a positive outlook for the months ahead.

“The New Zealand economy is resilient, and it will recover. Forward-looking data shows the work we are doing to rebuild the economy is already having an impact, and green shoots of recovery are coming through,” she added.

Inflation, which has remained high over the last few years, is projected to fall below 3% this quarter.

This shift is welcome news for households and businesses, many of whom have had to navigate the pressures of increased living costs and financial uncertainty.

In August, the Reserve Bank made its first cut to the official cash rate since 2020, reducing it by 25 basis points.

The decision provides some relief to those with mortgages and offers a glimmer of hope for struggling businesses.

Local business owners may find particular comfort in the news that business confidence is at its highest level in a decade.

“Some businesses are feeling a lot better about the future, with business confidence recently reported as the highest in a decade,” said Willis.

"It’s pleasing to see many businesses have the confidence to hire, invest, and grow once again."

Although economic recovery is still in its early stages, the government’s approach appears to be helping, with Finance Minister Willis assuring that brighter days lie ahead.

“There is still more work to do, but our careful and deliberate plan is laying the foundations for economic recovery,” she said.

For now, locals can look forward to easing financial pressures and the hope that better times are just around the corner.