Kimberley Symon
Advisory Partner
Kia ora and welcome to the seventh BDO Business Wellbeing Index report. Launched in June 2022, the BDO Business Wellbeing Index is a unique twice-yearly study exploring the leading business issues on the minds of New Zealand business leaders – analysing factors impacting both their business performance and wellbeing, then sharing practical business tips to help navigate these.
In many cases, the challenges encountered within your business are often shared by others in your industry. We encourage you to consider the insights and recommendations outlined in the report and how you can use them to navigate the path ahead.
Based on a nationwide survey of more than 730 business leaders during April 2025 – the weeks leading up to the Government’s annual Budget unveiling on 22 May - our May report provides timely insights on the big issues facing business leaders, now and over the coming six months.
We invited a panel of experts to discuss the findings in our latest report and share insights on the ways business leaders and the Government might respond – both in this year’s Budget and future policies. Watch the video featuring an interview with Kimberley Symon, BDO Advisory Partner, Alan Scott, BDO Tax Partner, and Brad Olsen, economic commentator.
VIEW OUR REPORT SECTIONS This report has been developed for device-friendly viewing in a web-based format (no PDF attachment). Please click on the icons below to view our report insights in each section; Business performance, Sector insights, Business leader wellbeing & Business tips |
While times remain challenging for business leaders, our May report indicates that we may have potentially turned a corner - with leading business performance metrics showing improved scores compared to September 2024.
Our May Index highlights 57% of business leaders felt positive about their overall business performance in the last two weeks – a 6% increase on our September 2024 survey. This increased optimism seems to be sustained, with 66% of respondents expecting to feel positive about their overall business performance in six months’ time, a further increase of 6% from September 2024.
A similar trend appears when reviewing business financial sentiment. Nearly half of New Zealand business leaders have been feeling positive about their current business financial performance, rebounding from a record low of 35% in September 2024 and returning to levels last seen in October 2023.
This picture of rebounding (relative) optimism highlights the resilience of Aotearoa’s business community, which has been hit hard in recent years through Covid-19, catastrophic weather events and economic turmoil. In addition, interest rates and inflation have receded, and the Reserve Bank predicts economic activity will recover throughout 2025, creating a more favourable business landscape.
Importantly, this turning point presents a significant opportunity for business leaders who have successfully navigated the challenging business environment of recent years. For the first time since our survey began, the May Index shows that business growth is now a leading (top five) issue for business leaders, who must now consider how they can achieve sustainable growth – and which opportunities they might capitalise on.
“We’re seeing business growth increasingly feature as a top-of-mind issue for business leaders as they look to move forward from the ‘survival mode’ of the past 18-24 months. Changing market conditions, fuelled by factors such as lower interest rates and improving dairy prices, are driving an improvement in overall business performance sentiment. However, for many, achieving business growth remains challenging in the current economic environment, with global trade dynamics highly uncertain, and their eyes will be on how the Government might offer support in the upcoming Budget and future policies.” - Kimberley Symon, BDO Advisory Partner
While the positive business performance sentiment is encouraging, it’s not necessarily a signal that all is rosy across the business community, and some sectors continue to struggle, notably construction. New Zealand faces ongoing cost of living challenges, impacting companies and consumers alike, and although consumer confidence is improving, the April 2025 ANZ-Roy Morgan Consumer Confidence report notes it remains subdued, suggesting households are exercising caution when it comes to spending. This will continue to present challenges, especially for the retail sector. In addition, businesses will be keeping a close eye on how the global economic situation unfolds, particularly in light of US President Donald Trump’s ongoing tariff announcements. 
With all this in mind, businesses may now be experiencing more of a return to normality or reward for their efforts in getting through the last two years, rather than a gold rush of good times.
While the BDO Business Wellbeing Index shows more positive business performance and financial sentiment among business leaders than in our previous two survey waves, it is by no means an overwhelming show of confidence. Business leaders are still feeling less positive about these key metrics than they did in 2022, when positivity about both business financials and performance hovered around 60%.
Our latest survey shows positivity is climbing back up from the low lows of 2024, but with economic clouds still on the horizon, business leaders may feel there is plenty of work to be done before true confidence is returned – and actual business growth will likely remain challenging for some time yet.
So what levers might the Government pull in the upcoming Budget – and beyond - to help businesses achieve growth? With Finance Minister Nicola Willis making it clear there will be “no lolly scramble” in Budget 2025, there may not be a significant cash injection for businesses, but there may be low-cost measures the Government can make to help alleviate business pressures and stimulate growth.
Foreign investment may be one approach, with the recent New Zealand Infrastructure Investment Summit highlighting the Government’s willingness to welcome foreign investment in local infrastructure. The Government has also indicated a desire to reduce red tape to make it easier to do business, notably with the introduction of the Regulatory Standards Bill. Interestingly, the BDO Index shows compliance and regulatory issues are not priority concerns for New Zealand business leaders, so the business impact of any regulatory changes is uncertain.
Finally, immigration policy remains a way to attract highly skilled workers to New Zealand. The Government has already announced changes to the Active Investor Plus and visitor visas to help encourage growth, and we may see more migration announcements throughout 2025.
“Given the BDO Business Wellbeing Index shows growth is at the forefront of business leaders’ minds, leaders will be looking to the Government to show some certainty around what their growth plans are for Budget 2025 to give them confidence that there will be growth later in the year.” – Alan Scott, BDO Tax Partner
Turning to wellbeing, our Index reveals that although business leaders feel more positive about their financials and overall business performance, their WHO-5 wellbeing score has not rebounded as strongly. This highlights that while the business outlook might be less negative than in 2024, it’s essential for business leaders to continue to address the leading drivers of negative wellbeing highlighted in our May report (view here).
As a business owner or leader in New Zealand, it's important to know you're not alone. Accessing support can be as simple as starting a conversation with your friends, whānau, business community or professional advisers. For practical guidance, view our report's business tip library or reach out to your BDO adviser. For wellbeing support, view our wellbeing section here.
Kimberley Symon