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Maximizing New Zealand’s Investment Potential in the Face of Global Economic Challenges

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Offshore⁤ Investors⁢ Seek Short-Term⁣ Opportunities⁣ Amid Global Economic Uncertainty

As the global economy faces uncertainty, offshore investors are shifting their focus towards short-term opportunities rather than long-term investments. ⁢This​ change ⁢in sentiment has been highlighted in the fifth mergers and acquisitions‍ (M&A) report by ⁤law firm Simpson Grierson, which surveyed ⁤international investors’ attitudes towards ⁣investing in New Zealand.

Mixed Appetite for Investing in New Zealand

The report reveals that offshore investors’ ⁤interest in investing‍ in New Zealand is mixed this year. Out of the 90 investors surveyed, less than⁣ half (44 percent) have‌ plans ⁢to‌ invest in the country within ‌the​ next 12 months. However, there has been a significant increase of ‍51 percent compared to last year in the number of ​investors interested in short-term​ investments.

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Opportunities in Declining Valuations

James Hawes, ⁤corporate⁢ partner at Simpson Grierson, suggests that the increase in interest⁤ for short-term investments is ‍driven by declining valuations. As valuations decline, investors are actively seeking bolt-on investments ‌for ​their existing platforms. This indicates a strategic approach to capitalize on the current market conditions.

Investor Sentiment in New Zealand: A Closer Look

As the global economy faces an uncertain period marked by high interest rates and inflation pressure, investor sentiment in ‍New Zealand has experienced a shift. ​According to a recent report, fewer investors are ⁤taking a long-term view of the country as a viable​ investment destination.⁤ However, despite this change, New Zealand remains an attractive place for investors.

A Changing Perspective

The ‌report reveals that only 29 percent of investors are considering investments in the medium- to long-term, a‍ significant decrease from the 54 percent recorded last year. Additionally, the study found ‌that 14 percent of investors would not ‌consider New Zealand⁣ as an investment destination, a⁣ notable⁢ increase from the previous year’s 0 percent.

Despite these figures, experts in​ the field, ‌such as John Hawes, believe that New Zealand still holds appeal for investors. Hawes states, “Our survey results showed people⁤ were still very bullish in ‍terms of ​New Zealand as a location. ‌It came out on top as the country most easy‍ to do business in ⁣the Asia-Pacific region.”

The Impact of⁣ Elections

The survey also highlights the influence of the upcoming​ elections‍ on investor sentiment. Approximately 31 percent of respondents stated that a ‌change ​of government would ​increase their intention to invest⁣ in the country. However, Hawes ⁤remains⁣ optimistic, stating, “Even though the survey⁤ shows a ⁣drop⁣ in positive sentiment, we don’t think the elections and potential change in government ‌will have any tangible impact on ‍investment here. Looking ahead, we have cause for cautious optimism ​despite ⁢the headwinds.”

Conclusion

While long-term ⁤investing sentiment‍ may be affected by global economic uncertainty, offshore investors are adapting their strategies to focus‍ on short-term opportunities. The survey conducted by Simpson Grierson highlights the shifting dynamics in the investment landscape, with investors actively seeking out potential investments in New Zealand. As the market evolves, it will be interesting to see how these trends continue to shape the‌ investment landscape.

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Tomas Hulman
Tomas Hulman
Tomas was born in Slovakia and went from being an untradeable computer scientist to first a fuel trader and later an algo trader who created strategies for automated stock trading. Now he is working with two eco-oriented projects and grinding his teeth for a big project in the media industry. You'll be hearing more from him...

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