With an annual growth rate of 4.9%, lending to the business sector is at its highest point since the Reserve Bank began recording it in 1998.
BusinessNZ chief economist John Pask said rising business debt was an indicator of an economy coming out of a long period of reasonably static growth.
“While lending levels are not necessarily related to economic growth over the short term, it is a positive step forward as business confidence continues to improve, despite geopolitical risks around the world,” Pask said.
“Recent economic data for a range of sectors shows improving economic growth in areas like tourism, agriculture, and manufacturing, as reflected in the recent BNZ-BusinessNZ Performance of Manufacturing Index (PMI).
“All of…