Exports continue to soar

March 27th, 2014 at 12:54 pm by David Farrar

Stats NZ reports:

of primary products led the rise in total goods in February 2014, Statistics New Zealand said today. This includes rises for milk powder, logs, and sheepmeat .

The value of exported goods rose $663 million (17 percent) to $4.6 billion in February 2014, compared with February 2013. …

The balance for February 2014 was a surplus of $818 million (18 percent of exports). This is the highest-ever surplus for any February month and compares with a surplus of $432 million (11 percent of exports) in February 2013.

Not bad. Look at the last six years or so here.

trade

 

Seasonally adjusted imports are at much the same level as 2008, while exports are around $7 billion a year higher.

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28 Responses to “Exports continue to soar”

  1. Psycho Milt (2,368 comments) says:

    That is good, yes – it’s going up as fast as it did under Labour.

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  2. burt (8,042 comments) says:

    Psycho

    It’s going up despite of the government rather than because of it – that might make it sustainable, which it clearly never was under socialist intervention and control tactics.

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  3. mandk (887 comments) says:

    @ Psycho Milt
    You forgot to mention that exports overtook imports pretty soon after the incompetent socialists were dismissed by the electorate, and that exports have exceeded imports since then.
    But then socialists only rejoice in economic misery.

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  4. Psycho Milt (2,368 comments) says:

    You forgot to mention that exports overtook imports pretty soon after the incompetent socialists were dismissed by the electorate, and that exports have exceeded imports since then.

    Gosh, it’s almost like something happened in 2008 that trashed people’s enthusiasm for spending money they didn’t have – it’s a mystery, I guess.

    It’s going up despite of the government rather than because of it…

    Under Labour, too. It’s almost like the government isn’t the primary driver of the country’s economy that MPs fondly imagine it to be…

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  5. gazzmaniac (2,319 comments) says:

    Gosh, it’s almost like something happened in 2008 that trashed people’s enthusiasm for spending money they didn’t have – it’s a mystery, I guess.

    And exactly why is that a bad thing? I think spending less than you earn is a virtue.

    Under Labour, too. It’s almost like the government isn’t the primary driver of the country’s economy that MPs fondly imagine it to be…

    Nope, it’s not. But it is the biggest handbrake to the economy.

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  6. Jack5 (4,917 comments) says:

    This is helpful. However, don’t forget the balance of payments.

    The current account deficit was $800 million in the December 2013 quarter, $1.7 billion smaller than in the September 2013 quarter.

    The annual current account deficit fell to $7.5 billion (3.4 per cent of GDP) for the year ended December 2013, down from $8.9 billion (4.1 per cent of GDP) for the year ended September 2013.

    Also, NZ’s net international liability position fell to $147.6 billion (66.6 per cent of GDP) at 31 December 2013. This compares with net international liability of $149.5 billion at 30 September 2013.

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  7. srylands (392 comments) says:

    “It’s almost like the government isn’t the primary driver of the country’s economy that MPs fondly imagine it to be…”

    No it is not. Except Government economic management can wreck economies. Look at Argentina. Well managed, Argentina could have delivered living standards equivalent to those of Australia. That same wrecking could happen in New Zealand.

    If we had a Government that presided over low taxation, efficient regulation, institutional quality, education and law and order, things would hum along nicely. Once those settings are right, a Government could usefully just stay out of the way.

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  8. Tautaioleua (293 comments) says:

    To the socialists, explaining is losing.

    Governments don’t lose elections when the economy is exceeding expectation. September is going to be a walk in the park.

    :-)

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  9. burt (8,042 comments) says:

    Psycho Milt

    That graph (’06 – ’10) pretty much shows how the entire economy works under a socialist government. Artificial stimulus (in the form of special tax breaks, import tariffs etc) always make things look good for the first 1-2 terms. Then inevitably it tanks and … we vote in a nasty National government to tighten the belt and stop wasting money picking winners and losers to align the economy to the socialist agenda.

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  10. gazzmaniac (2,319 comments) says:

    Jack5 – correct me if I’m wrong, but if we are exporting more than we are importing and our balance of payments is still a deficit, does that mean that foreigners are investing here? And if so, why is that bad?

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  11. Alan (1,083 comments) says:

    The graph needs to be of a longer time period to provide any meaningful information, 20 years would be good. As it’s presented, it’s just more election year FUD on Kiwiblog.

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  12. UrbanNeocolonialist (235 comments) says:

    Jack5 is right; balance of payments is extremely important in the long term – as otherwise Kiwis end up in the position of renting progressively more bits of NZ from overseas owners (such as caused the irish so much misery during the famines) and if we get too far into foreign debt we can never earn enough to claw it back. If we owe 150 billion offshore then that means about $5-10 billion in offshore remittances being paid every year to sustain that debt = 10-20% of exports.

    Policies that encourage a reduction in that overseas debt are a good thing. It would be better if that income were going to NZ investors who contribute to our economy and tax base. Pumping the overseas debt mountain up to sustain housing bubbles is very negative to our economy, amounting to a net wealth transfer from young to old (the wrong direction) based on the youth borrowing overseas.

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  13. Psycho Milt (2,368 comments) says:

    And exactly why is that a bad thing? I think spending less than you earn is a virtue.

    Did someone say it’s a bad thing? What an idiot, you should give them a slap.

    …Government economic management can wreck economies. Look at Argentina. … That same wrecking could happen in New Zealand.

    Indeed it could. The list of things that could happen in New Zealand is of great length. Of more relevance is the likelihood of things that could happen, and based on historical precedent the likelihood of a government wrecking the NZ economy is not large.

    If we had a Government that presided over low taxation, efficient regulation, institutional quality, education and law and order, things would hum along nicely.

    That’s how it worked in your textbook at university, yes. However, governments have to run the real, actually-existing country, which is a bit trickier than writing a textbook.

    Then inevitably it tanks…

    Bloody Labour, causing the GFC – have you told Obama it was them? He’ll be furious…

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  14. rangitoto (222 comments) says:

    The nz economy went into recession before the GFC.

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  15. burt (8,042 comments) says:

    rangitoto

    The nz economy went into recession before the GFC.

    The socialists have re-written that odorous piece of history …. Please keep up with talking points that the recession started because it became apparent that National might win the election !

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  16. burt (8,042 comments) says:

    Psycho Milt

    The Labour election campaign video of 2008 told the story… It showed great Labour governments spending public money like a drunken sailor then nasty National coming in and doing nasty things like killing off great socialist dreams.. Then Labour would be back in power again to rebuild and boom – National back cutting spending….

    The funny thing is – Labour folk seem to take pride in running unsustainable economic policies and then getting to point at how nasty National is for cutting spending…

    I guess the reality that Labour/socialist policies always end in tears is wrong – It’s because people get tired of the good times and vote for punishment !

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  17. wreck1080 (3,820 comments) says:

    I wonder how long this will be maintained?

    National have continued much of labours socialist dream too — they never reversed WFF or interest free student loans. Those disgraceful bribes made by that disgraceful woman.

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  18. Komata (1,142 comments) says:

    But, but, isn’t the economy supposed to be in decline? That’s what newspapers say that the nice Mr. Cunnliffe and Mr. Norman have been telling us, so it must be true.

    (They wouldn’t be telling us ‘porkies’ would they? Surely not, they look too nice…)

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  19. rangitoto (222 comments) says:

    As one of those having to fund those bribes, I can live with them if it keeps the greebor party away from the treasury benches.

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  20. srylands (392 comments) says:

    “However, governments have to run the real, actually-existing country, which is a bit trickier than writing a textbook.”

    There is your problem. They don’t have to “run” the country at all. They should “run” only about 20% of it, if that. You must be thinking of the Soviet Union.

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  21. Albert_Ross (270 comments) says:

    If we had a Government that presided over low taxation, efficient regulation, institutional quality, education and law and order, things would hum along nicely. Once those settings are right, a Government could usefully just stay out of the way.

    Don’t disagree with that Srylands, but do you really think New Zealand is doing so badly here? Perhaps you could name a few countries that do better in two or more of these areas?

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  22. dime (9,682 comments) says:

    Good stuff!

    rangitoto – hell yeah we did. 2007 we were in recession

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  23. srylands (392 comments) says:

    “Don’t disagree with that Srylands, but do you really think New Zealand is doing so badly here? Perhaps you could name a few countries that do better in two or more of these areas?”

    No it isn’t doing too badly, but there is room for improvement – e.g. we pay a very high price for planning restrictions on urban land supply. I maintain that the price New Zealanders pay for often poor quality housing is crazy and we have made that choice as a society.

    Our long tail of low education achievement and high levels of welfare dependency in working age people are big issues that will be a brake on prosperity.

    So there are three very major brakes on New Zealand’s prosperity that could be addressed by Government, and which should be seen by society as urgent priorities. It is these issues that should be subject to intelligent and urgent debate. Instead we get angst about whether the Crown should own 100% or 51% of a power company – which – relative to the issues I listed – is unimportant.

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  24. Steve (North Shore) (4,524 comments) says:

    OMG What are the snivelling Socialists going to do to stop this profiteering?
    I know, bring back the Ministry of Works and the Railway Workshops, increase the Civil Servant paper shufflers, buy back some SOEs. That should slow the economy down for a few years – like 15

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  25. Psycho Milt (2,368 comments) says:

    The Labour election campaign video of 2008 told the story… It showed great Labour governments spending public money like a drunken sailor…

    Labour governments have been relatively far apart and barely comparable in terms of policy. What you’re actually getting at is that 5th Labour spent public money like a government enjoying massive surpluses. The fact the surpluses stopped in 2008 was no more Labour’s fault than the lack of them since is National’s.

    …then nasty National coming in and doing nasty things like killing off great socialist dreams..

    Could you describe the form that this killing off of great socialist dreams took? As far as I can see, the Nats did what any other non-srylands-level-deranged government would have done – made a few cuts but kept the previous government’s agenda largely intact.

    But, but, isn’t the economy supposed to be in decline? That’s what newspapers say that the nice Mr. Cunnliffe and Mr. Norman have been telling us, so it must be true.

    I think you need to figure out the difference between “newspapers” and “right-wing blogs, talkback nutbars and in-head voices.”

    They should “run” only about 20% of it, if that.

    Awesome. If the nutbar 0% libertarian parties one day get to form a government, will we get to choose which 20% of the country they govern? I vote for the upper North Island.

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  26. OneTrack (2,837 comments) says:

    “And exactly why is that a bad thing? I think spending less than you earn is a virtue.”

    Can you tell Len?

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  27. OneTrack (2,837 comments) says:

    “There is your problem. They don’t have to “run” the country at all. They should “run” only about 20% of it, if that

    You must be thinking of the Soviet Union.”

    Or New Zealand, under a Green, Labour, Mana, Winston government.

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  28. wreck1080 (3,820 comments) says:

    NZD shot into the stratosphere this evening. Looking like it is on track to hit 0.87 against the USD.

    I’m gonna have to take a holiday or hit amazon woohoo.

    I wonder if this has anything to do with exports news .

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