Lockwood Smith
National Trade Spokesperson
6th November 2002
Tail wind dies in export sales
National's Trade Spokesperson, Lockwood Smith, says the latest trade figures show the wind has died from our export
sales.
"Exports were down 5.4% in the September quarter. But that's not the serious concern as exports can fluctuate from one
quarter to the next for a range of reasons.
"The big worry is that compared with the September quarter 2001, exports are down more than 8%.
"It's the year on year data that really confirms the trend. Our exports for the year ended September 2002 were down
almost 4% compared with our exports for the previous year.
"The high commodity prices in the first two years of this Labour Government saw exports increase by approximately 20%
each year. That gave the Government a strong economic tail wind that is now dying.
"Sure, high levels of immigration are now helping maintain economic growth. But we know that without the exports to
support that growth our trade deficit will inevitably widen. The latest trade stats confirm that with a decline of more
than $1.4 billion in our trade balance compared with the previous year", concluded Dr Smith.
Ends