LAWFUEL – The Legal Newswire – The GRI – which rated New Zealand DB2b as at September 2007 – is part of Dun & Bradstreet’s Country Risk Report, which provides political, commercial, macro-economic and
commercial risk analysis on 131 countries across the globe. The highest possible GRI rating is assigned to countries that display the lowest degree of uncertainty associated with these factors.
Within the region, New Zealand ranks fifth behind Australia, Hong Kong, Japan and Singapore (refer to Table 1: Country rankings – Asia-Pacific Region). Australia’s DB1c rating places it at number one in the Asia-Pacific region and number two on the global list. New Zealand’s DB2b
ranking places it 25th on the global list, on par with Iceland, Mauritius, Portugal, Slovenia and Spain.
Table 1: Country Rankings – Asia Pacific Region.
Hong Kong DB2a
New Zealand DB2b
Korea (South) DB3a
Sri l Lanka DB5c
According to John Scott, Dun & Bradstreet New Zealand General Manager, New Zealand’s ranking on the Global Risk Indicator is a positive sign, particularly at a time when the fall-out
from recent US credit events is negatively impacting countries across the globe.
“The recent US credit turmoil is having a global impact, with all regions buffeted by the resulting credit squeeze. New Zealand hasn’t escaped the fall-out, with its dollar falling sharply as
investors exit the market amid global financial jitters,” said Mr Scott.
“The economy is also being impacted by rising unemployment rates and expectations that GDP will slow next year. In this difficult environment, a ranking of 5th in the region should be
interpreted as a positive sign.”
The latest D&B Country Risk Report notes that New Zealand struggled with a potentially overheating economy, low household savings and a currency buoyed by speculative inflows in the first half of 2007.
The Report forecasts that real GDP growth will reach 2.0% in 2007 and 2.1% in 2008, while CPI inflation is expected to reach 2.8% and 2.7% in 2007 and 2008 respectively.