4.500
%
Neutral
11
mm boe
18
%
The rejection of the ridiculous Ahern closed economy approach is a positive step, but this needs to be more widely reflected in the country's outlook. Consequently, we raise our Outlook to Neutral.
February 25, 2024
Asia - Pacific
mm bbl
bcf
Oceania, islands in the South Pacific Ocean, southeast of Australia
Concession
Simple Concession fiscal regime where the contractor pays either a fixed Ad Valorem Royalty (AVR) of net sales revenues or a given % of Accounting Profit Royalty (APR), whichever is higher in any given year, plus corporate income tax.
The New Zealand economy has bounced back strongly following the Covid pandemic. Loosened mobility restrictions in April 2022 saw a surge of economic activity and cross-border movements. Positive economic indicators followed. Unemployment hit a multi-decade low of 3.4% while GDP expanded by 3.4%. However, hints that the economy had begun to overheat became more pronounced with inflation soaring to 7.3% in the year to December 2022, well outside the Reserve Bank’s target band of 1-3%, resulting in a steady tightening of interest rates that are meant to achieve an engineered recession. New Zealand has an international reputation for an open and transparent economy where businesses and investor can make commercial transactions with ease. As a small country that relies on trade and the rule of international law, major political parties are committed to facilitating investments that are productive, sustainable, and inclusive. While a broad range of investments in various sectors are welcomed, the New Zealand government is prioritizing investments that target opportunities in decarbonization, particularly in the public transport sector, as well as waste and plastics.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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