New Zealand is showing signs that government forecasts for an end to the recession and a return to positive growth in the final quarter of this year may be achievable. New Zealand exports were 5.8% higher this May than in May last year, and home-building permits were 3.5% higher in May than in April, according to the New Zealand statistics office.
Imports also fell, which helped to bring the annual trade deficit lower than it had been for more than five years.
The international downturn has sent New Zealand into its worst recession for more than three decades. It is hoped that these signs of recovery in the overseas trade and housing markets can spark the beginnings of a recovery in the wider economy.
The building permits increase is indeed a positive sign for the New Zealand property market according to Les Calvert, director of overseas property portal Property Abroad.com, he said:
"From an overseas property perspective, New Zealand property was primarily being purchased by lifestyle buyers, some of them doing so also with investment in mind, i.e. holiday home buyers who planned to rent out the property when not in use. These buyers are about the only type of foreign buyer left at the moment and so interest in New Zealand property has remained almost constant.
"Now that it seems the internal housing market in New Zealand is going to be one of the first in the world to think about recovering, this may bring interest from the investors sitting on piles of cash waiting for the right opportunity to buy cheap and sell for a quick profit."
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