Local Recovery Solidifies, While Global Uncertainty Continues

It’s lovely to receive the perfect Christmas present – but it’s even nicer to be the one doing the giving. Spending your money on other people, and giving it away, can do more for your wellbeing than spending money on yourself (assuming you’re enjoying a reasonable standard of living).

So if you’re feeling a little irritated by the crowds at the shopping centre or the delivery charges for your online order, consider that the act of giving could be doing you a surprising amount of good.  

Generosity makes you happier

People who spend money on others report greater happiness; that’s the finding of a Harvard report on the benefits of giving. The most benefit came from spending that met one of three criteria:

  1. It was socially connected – does the gift benefit some you feel connected to?
  2. It made a difference – can you see where you’ve made a genuine positive difference with your donation,?
  3. It was freely given – did you choose who you give to, or where you donated? That was more satisfying for givers than if the decision being made on their behalf.

Giving can boost your overall health

Older adults who give more money and time to other people have better overall health, according to one study. The most altruistic participants had fewer sleeping disorders, lower blood pressure and better hearing. Overall, they had lower morbidity than those who gave less, even after controlling for income and other factors.

When people had close family ties, they tended to give more to family, and those with fewer family ties gave more time and money to charities – but both groups experienced better health than those who were less altruistic.

Ways to give this Christmas

Finding ways to give will help you have a happier Christmas, whether it’s to friends and family or those most in need.

Bored with the ‘secret Santa’ at your workplace or amongst the extended family? Instead, set a donation amount and let everyone give it to a charity of their choice. When you get together, each person can give a quick explanation of the organisation they chose. That’s much more likely to leave everyone feeling good than receiving a $15 gift that will go straight to landfill.

You might also notice an increasing number of businesses that no longer give their clients gifts, but instead donate to a charity of their choice. It’s an environmentally friendly, zero carbon emissions gift that works for any recipient.

Low on cash this year? Why not volunteer? Volunteering has a strong positive impact on people, because it builds social connections as well as giving back. If you really want to boost your festive mood, volunteering your time to help someone in your family, or at your local city mission, will probably benefit you at least as much as it does the recipient.

The tax credit is an extra incentive

That’s right, on top of all the warm fuzzies and health benefits you get from giving, donations to not-for-profit organisations can also qualify you for a tax credit. Any donation of $5 or more allows you to claim a tax credit of 33.33%, provided three conditions are met:

  • You donate to an approved organisation or charity (there are nearly 700)
  • Your donation doesn’t directly benefit you or your family
  • The donation isn’t part of a will or debt forgiveness.

You can find out more here, or chat with your accountant to make sure you’re claiming back the full credit for your donations. That means that for every $100 you donate, you get $33.33 back – but the charity gets the full benefit of the $100. This applies to personal and corporate donations, so it’s a nice extra incentive to donate this Christmas.

From the whole team at Zagga, here’s wishing you a fantastic Christmas – with plenty of giving in every direction – and a prosperous year in 2023.

The latest GPD data is out, and at 0.2% growth in the last three months of 2025, it’s risen for three out of the past four quarters. We’re into annual growth for the first time since the third quarter of 2024, which is a hopeful signal that local conditions are improving.

The latest data shows solid increases in retail and accommodation sectors, finance and insurance, media and comms, and arts and recreation. Construction under performed, but data from January and February 2026 looks more positive for the sector, so overall the picture here in New Zealand is encouraging.

The looming concern is the global oil crisis, and the headlines seem alarming. But we’ve been reading some pretty frightening headlines every week since 2020, and we all just keep on going. What can you do in these uncertain times? The best advice is not to panic. If you have an investment strategy that’s taking you toward your financial goals, stay calm and talk to your adviser before you make any sudden moves. As ASB’s analysts point out, “the average conflict results in a very short-term drawdown of roughly 5% (using the S&P500 as a proxy), with the market recovering its losses over an average of 47 days.”

In the longer term, this fuel crisis might have an upside. If it encourages a faster shift to renewables, that will improve New Zealand’s energy security and make us less vulnerable to these oil shocks in future. ANZ is reporting more interest in EVs, and BYD says it’s had a bumper few weeks. The national grid reached a record high of 96.4% renewable in the latest data, a new record, so the decarbonisation megatrend is continuing its onward march here in New Zealand.

In response to the picture both here and abroad, the big banks have been nudging up their interest rates, leading to higher returns for savers. Term deposit rates are up marginally, but still below 4%. Returns on Zagga loans have also stayed steady, and have been consistently paying around 7%. We’re seeing rapid uptake on new opportunities, and we expect this continue throughout 2026 – particularly as momentum grows in the construction sector.

We’ve seen a noticeable increase in both the volume and quality of loan investments coming through this month, and we’re excited to be bringing these new opportunities to our investors. With strong demand and quick uptake on new listings, it’s important to be prepared so you can take advantage of opportunities as they become available.