There are a number of economic reasons why investing in New Zealand is a great decision, and we’ve listed the top 5 for you here:
- A business-focused economy
- Support for investment
- Global trade networks
- Strong digital infrastructure
- Top companies investing in New Zealand
New Zealand is considered one of the most desirable countries for global business and an ideal destination for investors and entrepreneurs. The World Bank has ranked New Zealand as the best country to do business in out 190 countries since 2017.
The economic upheaval caused by COVID-19 has dramatically affected and reshaped global markets and business, but New Zealand’s quick action to contain the virus has undoubtedly been the best in the world. As a result, a number of companies are seeking opportunities to expand their businesses and invest in New Zealand and citizens who were working overseas have returned home.
According to Bloomberg Media’s Market Crisis Management Index, New Zealand is the country that gives business managers the most confidence for future investment, thanks to its political stability, economic recovery post COVID-19, virus control, and social resilience.
One of the key parts of the Government’s strategy to rebuild the economy after the impact of COVID-19 is the significant investment they are injecting into key events and infrastructure projects to support businesses, generate jobs, raise revenue, increase domestic tourism and attract more international investments.
If you are an entrepreneur or business owner considering investing in offshore ventures and wanting to take your business to new heights, New Zealand should be at the top of your list of countries to invest in. Here are the top 5 reasons to invest in New Zealand:
1. A business-focused economy
New Zealand is a country of innovation with a stable business environment full of opportunities for investors and entrepreneurs seeking new prospects. The nation has been recognized internationally as one of the most prosperous countries in the world by the Legatum Institute, one of the best to do business in by Forbes, and one of the most attractive destinations for investors by Milkin’s Global Opportunity Index.
With a great strategic location, the country is well linked to Asian markets with a wide network of Free Trade Agreements (FTAs) and international alliances. Around 70% of its exports are to countries in the Asia-Pacific region, with these overseas sales receiving preferential trade access.
2. Support for investment
Along with its business stability and various free trade agreements, New Zealand is a country which supports investment. The Government has simplified rules and taxes for business meaning there are few restrictions on establishing, owning and operating companies, and investors or entrepreneurs face relatively few regulations.
If you’re considering an initiative that generates exports, you will have access to an added range of benefits, financing instruments, and mechanisms to help you from the start.
3. Global trade networks
New Zealand has well-established trade links with China, Hong Kong, USA, Japan, and Australia and other agreements with nations in South East Asia (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam), Chile and Korea.
There are also trade agreements in negotiation or awaiting ratification with India, Saudi Arabia, the Gulf States, Russia, Belarus and Kazakhstan.
These trade networks expand the opportunities for businesses who want to go global, grow the scale of their business, and be more competitive by taking advantage of the remarkable offshore firms and technologies.
4. Strong digital infrastructure
New Zealand was ranked in the top 20 of the World Economic Forum’s 2016 Network Readiness Index, measuring overall readiness for participation in the digital world, and since then has only improved its technological capabilities.
The pandemic has proved that technology is more important than ever and if you’re not investing in technological advances to support your business you’ll fall behind. With more demand for long-term digital solutions as a corporate priority, New Zealand’s advanced and efficient internet infrastructure makes it one of the best locations to operate a business and develop initiatives, remotely or otherwise.
5. Top companies are investing in New Zealand
New Zealand’s innovation, creativity, and reliable economy have led global businesses to make significant investments in the country. In 2020, Microsoft announced the construction of its first data centre in Auckland, a major achievement for the country.
The project, which has already received approval from the Government, provides the opportunity for thousands of companies to move through a digital transformation. Microsoft will also implement a skills training program to increase future employment opportunities for the people of New Zealand.
Microsoft is not the only company to realise the potential of New Zealand. Major film production companies have chosen New Zealand as their film location due to their successful management of COVID-19 and fabulous landscape.
The country has received an unprecedented boom in the number of projects, such as James Cameron’s Avatar sequels, Amazon’s Lord of the Rings series, and a number of Netflix series, just to name a few of the productions currently filming in New Zealand after being granted travel exemptions.
The injection of millions of dollars into the local economy did not just start after COVID-19. In 2011, Peter Thiel, the billionaire venture capitalist and co-founder of PayPal, decided to invest $3 million in Xero, the specialist New Zealand accounting software company.