IDEAS home Printed from https://ideas.repec.org/a/nzb/nzbbul/june20054.html
   My bibliography  Save this article

Developments in the New Zealand corporate sector

Author

Listed:
  • Khoon Goh

    (Reserve Bank of New Zealand)

Abstract

This article examines recent trends in the New Zealand corporate sector by analysing data from various sources. The corporate sector has enjoyed increased pro?tability over the past few years on the back of strong economic growth. While the absolute level of debt has also been rising in the past few years, the overall balance sheet position has improved. The recent strong investment growth appears to have been funded out of retained earnings or equity raisings rather than via debt. This has allowed businesses to strengthen their balance sheets while investing for future growth at the same time. Margins started to come under pressure towards the end of 2004. Looking forward, rising input and labour costs, and higher cost for some capital items may lower pro?tability over the coming year. At this stage, it appears that businesses in the non-tradables sector are more likely to pass on increased costs on to customers. Businesses in the tradables sector have more limited pricing power.

Suggested Citation

  • Khoon Goh, 2005. "Developments in the New Zealand corporate sector," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 68, June.
  • Handle: RePEc:nzb:nzbbul:june2005:4
    as

    Download full text from publisher

    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2005/2005jun68-2goh2.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Leslie Hull, 2002. "Corporate behaviour and the balance of payments," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 65, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:june2005:4. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre). General contact details of provider: http://edirc.repec.org/data/rbngvnz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.