Positive News in Export Performance

Positive News in Export Performance

Export statistics released today show the importance of Free Trade Agreements and suggest that New Zealand’s eventual economic recovery is likely to be export-led according to the Wellington Regional Chamber of Commerce.

“While the main contributor to New Zealand’s increasing trade surplus is falling imports, the steady growth in exports is pleasing against a backdrop of declining global trade,” said Chamber CEO Charles Finny.

“The depreciating dollar has been a significant factor in the overall strong export performance. However the figures show the proliferation of FTAs and the strategy to build better linkages with Asia, are producing results.

“Exports to China in the three months to May 2009 were 92% higher than the same time last year, for example. The China-New Zealand FTA came into force on 1 October 2008 and is almost certainly a contributor, as well as the switch away from domestic dairy consumption in China.

“The figures for India for the same period, up 90%, are encouraging given the prospects of an FTA with that country.

“New Zealand is fortunate that food makes up a large proportion of its export base which is less vulnerable in the global economic downturn than other products. However, we must not underestimate the importance of our non-traditional exports such as services exports.

“While figures are not available for May, last week’s figures from Statistics New Zealand show that services exports other than tourism are increasing even faster than merchandise exports.

The Chamber is keen to see exports increase their contribution to the Wellington regional economy and is part of a collaboration with EMA Central and Export New Zealand to help achieve this,” Mr Finny concluded.

ENDS

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