5 reasons to invest in New Zealand
Last Updated on June 21, 2024
New Zealand, known for its breathtaking landscapes and vibrant culture, is also emerging as a hotspot for global investors. With a stable economy and numerous investment opportunities, it’s a prime destination for those looking to expand their portfolios.
For many global investors, New Zealand spells an unknown against the famed but saturated markets of many other investment hotspots. Those not in the know may be missing out, as New Zealand provides a thriving economy for anyone brave enough to put their money where their mouth is.
This article explores the top reasons to invest in New Zealand, from its strategic location to its booming tourism and entertainment sectors.
1. Stable economy
Compared to the unrest present in a lot of nations right now, New Zealand is a veritable haven for investors with a stable economy and consistent government. Over the past decade, New Zealand has maintained steady GDP growth, running at around 2-3% annually. This kind of stability in the economy makes it a safe place to investors to stake money without worrying about a sharp drop in GDP making them bankrupt.
Investors can also rely on lower taxes in New Zealand, as is usually the case in any country with a strong economy. Fewer economic regulations give investors far more freedom in how they wield their profits and invest in their companies. This is especially true for international investors that come from a country with an unstable government that exposes them to unnecessary financial risk.
2. Strategic location
New Zealand sits right in the gateway to the Asia-Pacific region, offering Western investors rich trade opportunities in major markets such as China, Australia and Southeast Asia. Investors seeking to exploit these nations from further afield will struggle with global logistics, but by basing themselves first in New Zealand itself, many ventures that rely on physical proximity such as shipping will then find the gates open to hundreds of new profitable markets.
It’s not just the physical situation that makes New Zealand a strategic location either. New Zealand is part of many lucrative trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which provides investors with favourable conditions and reduced tariffs in neighbouring nations.
3. Innovation and technology
New Zealand’s major cities like Auckland are not just a good place to travel. Technology is perhaps the most lucrative sector for investment today and New Zealand’s largest cities have become renowned for their vibrant tech scenes in the past decade. Start-ups are everywhere in the cities, and any investor will find a specialty that catches their interest whether that’s fintech, software development or biotech.
Investors will find a supportive government behind them too. The Callaghan Innovation Fund is just one initiative that provides grants for research and development in the city, fostering an environment of rich innovation.
4. Booming entertainment industry
It’s certainly not the first thing that comes to mind when people think of investors, but the country has a booming entertainment industry ripe with opportunities for creative-minded investors. Its film industry is globally recognised, especially after producing blockbusters like “Lord of the Rings” and “Avatar”. Already rich with talent, these successes have attracted international attention and investment which spell a bright future for the country’s film industry.
For those who prefer their entertainment hands-on, New Zealand isn’t just the new Hollywood, but the next Las Vegas as well. It’s one of the few countries that has a strong, regulated legal framework that allows the casino industry to thrive. Whether it’s the brick-and-mortar casinos attracting tourists from all over the globe or the growing popularity of online pokies, the casino industry in New Zealand has only just started to grow, and investors will find a wealth of opportunities within this sector.
5. Renewable energy
More investors than ever are now focussing on sustainable initiatives thanks to the promise of moral investments and future-proofed returns. New Zealand is one of the best places in the world for green-minded investors. Due to its unique environment and forward-thinking investors, the country is one of the leaders in renewable energy, generating a huge 84% of its electricity from renewable sources, using primarily hydro, wind and geothermal power.
The country has not stopped seeking even more sustainability either, creating lucrative opportunities for investment in the expanding renewable energy infrastructure. It’s the perfect location for investors who focus on environment, social and governance (ESG) factors.
