Economics and trade

Strong second-quarter GDP growth lessens case for RBNZ rate cut

[20 September/The Country] The New Zealand economy grew the most over in two years over the June quarter. The 1 percent quarterly GDP gain was not expected by the Reserve Bank. The NZ dollar reacted, increasing by over half a U.S. cent. Economists expected the Reserve Bank to review its official cash rate if growth...

NZ economy may not be as slow as business confidence suggests – for now

[17 September/Stuff] Statistics New Zealand will release figures on how fast the NZ economy grew in the three months to June 30 later this week. Increased farm production during autumn may have seen strong growth in the quarter, however any disappointment could lead towards an interest rate cut. Despite headlines of weak business confidence and...

Higher dairy export prices boost terms of trade

[6 September/Radio NZ] New Zealand’s purchasing power with the rest of the world rose in the last quarter due to higher dairy prices. The terms of trade increased 0.6 percent in the three months to June. ASB Senior Economist, Mark Smith, said the terms of trade were now only 1.4 percent below the late 2017...

New Zealand Business Roundtable in China Formally Launched

[5 September/NZBRiC] The New Zealand Business Roundtable in China was launched in Shanghai on 5 September. The event was attended by senior members of the New Zealand business community in Shanghai. The Board Chair, Kevin Parish, said it was a representational platform led by New Zealand business and would advocate for key interests on behalf...

Huge China-backed free trade deal could be signed as early as November

[3 September/NZ Herald] The ongoing trade war and a thaw in ties between China and Japan raised prospects for the world’s biggest regional free trade deal. Singaporean Trade and Industry Minister, Chan Chun Sing, said negotiators from 16 likely signatories of the China-backed Regional Comprehensive Economic Partnership agreed on key elements of the deal at...

$4.44b annual trade balance highest in nine years

[27 August/Otago Daily Times] New Zealand’s trade deficit hit a nine year high of $4.44 billion. This was mainly due to export volumes being stronger than expected. According to Statistics NZ International Statistics Manager, Tehseen Islam, oil prices and a weakened New Zealand dollar were contributing factors, and imports and exports were both up for...

Weaker kiwi raising NZ commodity prices in local terms

[20 August/Otago Daily Times] According to ASB Senior Rural Economist, Nathan Penny, a weakened New Zealand dollar is boosting commodity prices in local terms. The Commodity Price Index had lifted 8.3 percent annually in New Zealand terms. Fonterra dropped its forecast from $6.75 per kilogram of milk solids to $6.70. Mr Penny noted the Chinese...

US stance on Iran won’t apply to NZ – David Parker

[8 August/Radio NZ] The Government is confident the U.S’s stance on firms doing business with Iran would not apply to New Zealand. President Trump re-imposed sanctions against Iran and suggested other nations should follow his lead. He added those who didn’t would not be able to do business with the U.S. Trade Minister, David Parker,...

Govt seeks input on trade policy

[8 August/Otago Daily Times] Trade and Export Growth Minister, David Parker, has launched a review of New Zealand’s trade policy under a Trade for All agenda.  The Government is inviting all New Zealanders to have their say on what to them on trade policy and in trade agreements.  He said trade policy was integral to...

Trade imbalance tops $4 billion in year

[26 July/Otago Daily Times] New Zealand’s annual trade deficit is over $4 billion. This was largely due to a weakening in dairy export values widening the gap. New Zealand’s annual imports increased by $6.02 billion whereas exports rose by $5.65 billion. ASB’s Senior Rural Economist, Nathan Penny, said the balance was weaker than expected and...

EU and New Zealand launch trade talks in face of trade wars

[21 June/NZ Herald] Trade talks between New Zealand and the European Union have been formally launched in Wellington with the EU Trade Commissioner, Cecilia Malmstrom, saying she was confident a compromise could be reached on issues such as agriculture. Trade Minister, David Parker, hoped a trade agreement could be in place within two years. It...

Northland’s simmering summer is Taranaki’s scorched earth: ASB regional scorecard

 [7 June/NZ Herald] Northland’s summer outperformed the rest of the country, and it climbed to the top of the latest ASB Regional Economic Scorecard. It measures regional performance in terms of growth across 11 measures. ASB Chief Economics, Nick Tuffley, said strong growth across all the measures had been key to Northland’s success. He added...

New Zealand needs a food integrity story

[28 May/Farmers Weekly] According to agricultural trade envoy, Mike Petersen, New Zealand has a role to play in helping other countries with food security, business futures and innovation. He added food security was a real issue for many countries, but as we have an abundance of food in New Zealand and we don’t take security...

‘Unrealistic’ to expect EU to ditch all agricultural tariffs, business body warns

[23 May/Stuff] The New Zealand Europe Business Council said a free-trade deal between the EU and New Zealand could boost exports by $2 billion a year and save New Zealanders hundreds of millions of dollars a year in cheaper imports. Its president, Franck Olssen, forecasted an agreement could be produced in two years. He noted...

Economy set to gain from 7 per cent drop in NZ dollar in just a month in a month

[21 May/NZ Herald] The New Zealand export sector and general economy looks likely to benefit from the 7 percent fall in the New Zealand Dollar relative to the U.S. dollar. A weaker local currency stimulates export earnings. In the case of Fonterra, the substantially lower NZD would be supportive for farmgate milk prices. ANZ Senior...

China trade agreement upgrade to reflect modern trading relationship: PM

[14 May/Stuff] Foreign Affairs Minister, Winston Peters, will go to China to talk trade at a critical time. Mr Peters said the objective was to extend their relationship and a range of issues would be up for discussion. He added that China had a growing influence on the Pacific region and that New Zealand needed...

Winston Peters confident about announcement of EU-New Zealand trade negotiations

[9 May/NBR] Foreign Affairs Minister, Winston Peters, was confident the EU would agree to start trade negotiations with New Zealand when it meets on May 22. He said serious progress had been made to the extent they believed there wold be an announcement from the EU in respect to a free-trade negotiation start. Jacinda Ardern...

Alibaba Group chief executive on New Zealand visit

[27 April/The Country] Alibaba Group Chief Executive, Daniel Zhang, will meet business leaders and heads of government agencies, but did not have any formal meetings planned with ministers during his trip to New Zealand. Alibaba has invited government agencies to several events where Mr Zhang will talk about its own enterprise and global initiatives. A...

Commonwealth FTA ‘too ambitious,’ exporters say

[23 April/Stuff] ExportNZ Executive Director, Catherine Beard, said a multilateral trade deal between commonwealth trade countries was too ambitious given the workload already on New Zealand’s dance card. She added that it was a possibility however would take a lot of time. Ms Beard noted that dairy exporters were excited about a deal including Africa,...

Developing Auckland as a Silicon Valley for food

[18 April/NBR] Auckland had the hallmarks of a business cluster for F&B manufacturing according to a government report. The report identified Auckland as having one-third of New Zealand’s food and beverage manufacturing firms, 23 percent of the country’s F&B manufacturing employees and half of the head offices of the largest F&B firms. The report said...

US position on TPP unclear, says Govt

[13 April/Otago Daily Times] According to Trade Minister, David Parker, it was still unclear whether the U.S. was committed to returning to the Trans Pacific Partnership. U.S. President, Donald Trump, told officials to look at signing the partnership. During his campaign he was against the deal calling it a disaster. He saw it as a...

Primary sector export returns tipped to rise by 10 per cent to $42.4 billion

[19 March/Stuff] Export returns from farms, orchards, forests and fishing are expected to hit a new record of $42.4 billion by the end of June . According to the Ministry for Primary Industries, this would be a 10.8 percent increase and that its forecast reflected a recovery in dairy prices over the past 12-18 months,...

Economic growth takes a hit due to weather

[16 March/Otago Daily Times] Weather related events over the last three months have affected economic growth. Gross Domestic Product increased by 0.6 percent in the three months ended December which was weaker than most forecasts suggested. Growth was also impacted by the fall in NZD/USD exchange rate. According to Statistics New Zealand, higher activity in...

NZ signs CPTPP deal in Chile

[9 March/NZ Herald] Trade Minister David Parker signed the Comprehensive Progressive Trans Pacific Partnership, and also revealed New Zealand had signed side letters with five countries to exclude the use of controversial compulsory state-disputed settlement provisions. He added that it was good to see international acknowledgement of the need for trade that worked for everyone....