As New Zealand settles into alert level one, and what is the “new normal” for society post Covid-19 lockdown, the effects of the pandemic continue to be felt around the globe including the Pacific region.
Covid-19 is causing havoc on economies the world-over, more so for Pacific island economies.
Key insights of the second Pacific Trade Invest (PTI) Pacific Business Monitor Survey – launched to understand and provide governments, donors and stakeholders with necessary data of how businesses in the Pacific are doing – show the situation is not easing up.
Of those who replied to the survey, 88 percent of businesses throughout the Pacific report a negative impact of Covid-19 with 66 percent reporting a significant decline in sales/revenue. This is down from 79 percent in the first survey two weeks prior.
Most businesses – 95 percent – believe the crisis will have a negative impact on the local economy, although, 70 percent are confident they will survive the pandemic.
However, half of the number of survey respondents do not expect revenue to return to pre-Covid levels until next year or beyond.
Nearly half (40 percent) of businesses need support to access new markets – either local or overseas. This is a five percent increase from the initial survey.
Those who responded to the survey express the top three challenges as a result of Covid-19 are not knowing how long the crisis will last (90 percent); the impact of closed international borders (90 percent); and poor cash flow (85 percent).
Nearly two-thirds of business decision makers are now reporting Covid-19 is having a negative impact on their mental health, with nearly a quarter reporting a negative impact.
Keeping in line with the first survey, 86 percent of respondents’ report Covid-19 has had a negative impact on the well-being of their community.
Full reports and country-specific reports including Papua New Guinea and Niue, are available online HERE.
The team at PTI New Zealand understands the difficulties its clients face on the ground in their own countries as well as with their exporting countries – especially with a global pandemic occurring around them.
We are hugely supportive of our clients and are willing to assist them with any relevant queries or issues they may have; and PTI New Zealand encourages Pacific businesses to take part in the fortnightly PTI Pacific Business Monitor surveys so we can getter understand your needs.
Contact Trade Development Officer at PTI NZ Riley Birtwistle Riley.B@pacifictradeinvest.co.nz to register for the survey.