Services Exports have Potential to Grow

Today’s Balance of Payments deficit is a timely reminder of the importance of services exports and the need to grow this important sector of the New Zealand economy according to the Wellington Employers’ Chambers of Commerce.

“Today’s figures showed that the country recorded a $2.8 billion deficit for December quarter 2010. While exports grew quite strongly, largely due to high commodity prices, there is clearly a need for New Zealand to grow its exports further,” said Chamber Chief Executive Ken Harris.

“The export of services is an area of untapped potential for New Zealand. Professional, medical and education services; tourism; ICT and film are just some examples of economic activities where we have a recognised, but under-exploited, competitive advantage.

“The services sector is particularly important to the Wellington economy. 90% of our regional GDP is generated by services activity much higher than the national average and it will be instrumental in the growth of the regional economy looking ahead.

“Services exports fell in the December quarter due to a fall in expenditure by overseas visitors to New Zealand but stripping out travel and transportation, services exports grew 12% year on year.

“It is essential that the government does not overlook the importance of services exports in its policy making particularly in the trade negotiations agenda.

“$3.1 billion of services were exported in the quarter. These export figures are higher than many might think but they are no where near as high as they could be,” Mr Harris concluded.

ENDS

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