Opportunities to adapt to a new normal
Next year will bring uncertainty that will be challenging for many but an opportunity for households and businesses, says NZ Institute of Economic Research principal economist Christina Leung.
The past few years have presented many challenges for NZ households and businesses, not least of which has been the changes in demand and the operating environment arising from the Covid pandemic.
The outbreaks changed the way we live and work as we all now grapple with the ‘‘new normal’’. On top of that was a sharp rise in costs and interest rates.
These challenges will likely continue into 2023. While the uncertainty will present many challenges, it also presents opportunities for households and businesses to do things differently. How well we navigate these challenges will depend on how well we adapt to rapidly changing conditions.
For example, the Covid outbreaks have accelerated digitalisation and opened up new channels, which have allowed some businesses to reach a wider range of markets.
How do you think the Government has handled the economy?
The Government has faced many unprecedented challenges reflecting both domestic and international developments.
I would say it has done a fair job in handling most of them at a macro level.
There are things in hindsight that it appears to have been on the back foot on, such as just how much demand will outpace supply to drive the surge in inflation due to the sheer amount of stimulus injected into the economy.
Being an Auckland resident, the extended lockdown in late 2021 with little clarity around an exit strategy — beyond patiently waiting for regions to reach 90% vaccination rate — was a lowlight, and shows the importance for policymakers to be on the ground (or in this case, in the region) to experience the realworld implications of policy decisions.
How do you think the National Party has performed in opposition?
Clearly, the issues of increasing crime and rising costs are resonating with voters.
As with all parties, it would be useful for the discussion to focus more on solutions and backed by detailed policy and evidence. What will be the major challenges and/or opportunities for New Zealand in 2023?
For me, it would be how much Wordle has taken off. Wordle was created last year, but it really took off this year, and there have been so many spinoffs created from it: Quordle, Foodle, Tradle, Actorle . . .
Enjoying some R&R (in hopefully sunny weather) and traipsing around the South Island.
Do you have a new year’s resolution for 2023?
I am not really one to make resolutions — if I have something I want to achieve, I try to get on with it rather than wait.
In the first instance, I would recommend reading one (or more) of the books picked for this year’s NZ Institute of Economic Research summer reading list for the Prime Minister.
As for watching television, I am enjoying Little America on Apple TV, and I cannot believe I have only just seen it as season 2 has already started.
It is an anthology series inspired by the true stories of immigrants in America.
I have found many of the stories quite moving.
It is a great way to walk in someone else’s shoes for half an hour. — What was the most interesting story of 2022? What’s your top streaming TV series tip for the summer? Where and how are you holidaying this summer?