Peak body Retail NZ is urging the Government to prioritise stimulating the economy and reducing cost-of-living in this week’s Budget, set to be handed down today.
The Government has already announced several initiatives that are set to be funded in the upcoming Budget across a range of areas, including enabling businesses to access cheaper loans to reduce their dependence on gas.
But Retail NZ CEO Carolyn Young said one of the key priorities for retailers this year is economic growth.
“We know the rising cost of fuel is squeezing already tight margins for the retail sector, and the cost of essentials is continuing to go up for households,” Young said.
“The growing pressure on consumers’ wallets and declining confidence has been hitting retail hard, and we are hearing growing calls from our members for the Government to take measures to stimulate the economy and encourage people back out spending in their local communities and high streets.”
Young noted that there are almost 30,000 retail business in Aotearoa/New Zealand, employing nine per cent of the country’s workforce. She said the success of the retail sector is vital to the economy and the success of our country into the future.
“We would like to see that reflected in the Budget with a heavy focus on improving economic conditions.”
Retail NZ then cited the quarterly Ipsos Issues Monitor, which came out on Tuesday this week and which shows inflation/cost-of-living and the economy are two of the top three issues for New Zealanders, closely followed by fuel and unemployment.
“It is clear the general public holds similar views to the retail sector as to what are the biggest priority areas for the country right now. Helping to tackle cost-of-living and fuel pressures could go a long way towards improving the economy more broadly,” Young said.
“Additionally, we know there is a large proportion of young people who aren’t in education, employment or training. If the Government was to take measures to stimulate the economy, there would be greater opportunity to get these young people into work and become more active participants of the economy as well.”