This article was originally created for Hayes Knight (now Nexia Auckland).
Home > Updates > Navigating your way through a recession
Unlike past recessions, New Zealand is well-positioned to weather a period of fiscal deficits. The country has an economy that has been performing well, a strong balance sheet, a currency that has not been overvalued and forecast low interest rates. In addition, the Government has announced a range of policies to assist New Zealand businesses through the pandemic with details available at this government website and further government advice is available here.
The level of impact the pandemic and recession will have on businesses will vary depending on their industry exposure to the immediate effects. However, all businesses have been impacted by COVID-19 to a certain degree and to come through successfully, it is important to be pro-active by analysing your business and taking action rather than simply hoping for the best.
Taking a step back to analyse your business’s strategy, reviewing strengths and weaknesses, keeping tight control of cashflow and creating a plan to protect your business will make a significant difference to your business’ future viability. The challenge lies in controlling the immediate impact on your business while continuing to meet the needs of your customers, staff and retaining your infrastructure for when the upturn comes.
Please contact your Hayes Knight advisor if you wish to discuss how best to navigate your business through a recession or if you would like any clarification on the assistance available through the Government’s COVID-19 economic response package.