Rangatira Annual Report 2023 - Flipbook - Page 6
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R anga tira Annua l Rep or t 2 0 2 3
DAVID PILKINGTON
Chair
MARK DOSSOR
Chief Executive Officer
Chair and Chief Executive Report
Introduction
The Reserve Bank has indicated an end to near-term interest
rate increases, a sign that they see the storm clouds of
recession appearing on the horizon as recent high levels of
As we prepare to finalise our 2023 Annual Report, the
inflation and interest rates have slowed spending to a point that
opinion polls reveal a tightening race as to which of
we will see the economy contract. In time, this will lead to lower
the political parties will be able to form a government
inflation and at some point, interest rates will follow. This will
following the upcoming national election.
see heightened unemployment, reduced consumer spending
and a fall in business investment in the coming eighteen months,
What is apparent is that the election outcome will lead to two
quite different paths for New Zealand. In recent times the two
leading parties have advocated a centrist policy direction, so
either way New Zealand has by and large followed a centrist
policy path.
This time, with the potential for coalition parties to be more
influential, the two options appear to be quite different. So, the
election in October could well result in the country heading in
one of two distinctly different paths.
with flat to declining assets values.
None of this will be a surprise to most as it has been well
documented. Without wishing to downplay the harsh impacts
on individuals and communities, in some respects, it is better to
quickly progress through what feels like an inevitable cycle so
that we can quickly return to more positive economic settings.
We remain optimistic that this will happen quicker than we think
and that it will not be too long before we see the economy turn.
History has demonstrated that it is human nature to react and
adapt, with the consequence being that a return to growth is
This will have an impact on the New Zealand economy and
inevitable, as is the current expectation of a slowdown.
therefore the investment environment in the coming years.
Whichever result we end up with in October, the differences will
be stark and embedded for some time.
In the 2022 Annual Report, we commented on the international
settings as we faced the end of Covid, the Ukraine conflict,
climate change effects and general worldwide instability.