Exports up again

May 26th, 2014 at 3:00 pm by David Farrar

The monthly stats out again. Some extracts:

  • Exports at $50.6 billion 9.5% higher than a year ago
  • Balance of trade surplus of $1.2 billion. In 2008 it was a $4.6 billion deficit
  • Exports to China up 52% from a year ago, UK 11%, Singapore 14% and Taiwan 15%

We recently signed an FTA with Taiwan. FTAs are good. We are a small trading nation. Two parties in Parliament have a history of consistently opposing almost all trade agreements that improve access for NZ exporters.

 

Tags:

18 Responses to “Exports up again”

  1. Harriet (5,132 comments) says:

    » Exports at $50.6 billion 9.5% higher than a year ago
    » Exports to China up 52% from a year ago, UK 11%, Singapore 14% and Taiwan 15%

    Exports to China must still be rather small – for them to increase by half within 1 year but keep the total export value increasing by only 9.5%.

    Vote: Thumb up 1 Thumb down 6 You need to be logged in to vote
  2. dime (10,120 comments) says:

    Please allow me to channel wussel norman

    “its the wrong kind of exports. we are in crisis”

    Vote: Thumb up 12 Thumb down 1 You need to be logged in to vote
  3. Grizz (611 comments) says:

    The papers have twisted this result as doom and gloom. What is not widely reported is our large trade imbalance with China. We exported $11.4 billion worth of goods to China in the last year while we imported only $8.4 billion worth of Chinese goods. Not sure how many other Countries can report a trade surplus with China. Also we need to be weary that China may wish to address this imbalance sometime soon.

    Vote: Thumb up 7 Thumb down 0 You need to be logged in to vote
  4. mikenmild (11,764 comments) says:

    Stuff’s headline is ‘Exports Down’!

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  5. slightlyrighty (2,475 comments) says:

    But the dollar is too high…. Our exporters are in Crisis…..but but but…….

    Vote: Thumb up 8 Thumb down 0 You need to be logged in to vote
  6. srylands (414 comments) says:

    R Norman 26 May 2014:

    “A Green government will champion innovation and establish institutions that steer investments towards smart, green technologies – the fastest growing sectors in the world.

    “We will back this through initiatives such as the establishment of the Green Investment Bank,” Dr Norman said.

    https://www.greens.org.nz/press-releases/april-trade-figures-show-commoditisation-nz-economy

    Seriously, this makes me feel a combination of angry and ill. Why doesn’t the media ask the obvious question? If these “fastest growing sectors in the world” are so profitable, why will it require politicians to “steer” investments, and for a new State owned bank (sic) to pony up the capital?

    It is ridiculous that 30 years after we started serious reform, and in a modern society with intelligent people, that this stuff is allowed any oxygen at all.

    Now I feel sicker. And angrier :-(

    Popular. Like or Dislike: Thumb up 22 Thumb down 1 You need to be logged in to vote
  7. alloytoo (574 comments) says:

    @ Grizz

    I don’t really think the Chinese are terribly worried about their trade imbalance with lil ol NZ.

    Compared to the US our imports are a drop in the Ocean.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  8. hj (7,066 comments) says:

    How does our people serving sector help exports?

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  9. Judith (8,534 comments) says:

    Good to see, pity consumer confidence is dropping though.

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11261091

    Vote: Thumb up 1 Thumb down 4 You need to be logged in to vote
  10. stigie (1,321 comments) says:

    Very well said Srylands, totally agree, but for christ sake, dont take that across to the Stranded,
    otherwise you will most certainly make them sick and angry and most likely toss you out !~

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  11. rangitoto (251 comments) says:

    “Seriously, this makes me feel a combination of angry and ill. Why doesn’t the media ask the obvious question? If these “fastest growing sectors in the world” are so profitable, why will it require politicians to “steer” investments, and for a new State owned bank (sic) to pony up the capital?”

    Huge profits like this:

    http://www.stuff.co.nz/business/industries/9830698/Windflow-struggles-to-survive-but-profitability-in-sight

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  12. wally (65 comments) says:

    Cunliffe must have declared an export crisis.

    Vote: Thumb up 5 Thumb down 0 You need to be logged in to vote
  13. Kimbo (1,078 comments) says:

    But won’t an improvement in the balance of trade cause an imbalance in the spirit level?

    Vote: Thumb up 5 Thumb down 0 You need to be logged in to vote
  14. ross411 (880 comments) says:

    Grizz (481 comments) says:
    May 26th, 2014 at 3:24 pm
    The papers have twisted this result as doom and gloom. What is not widely reported is our large trade imbalance with China. We exported $11.4 billion worth of goods to China in the last year while we imported only $8.4 billion worth of Chinese goods. Not sure how many other Countries can report a trade surplus with China. Also we need to be weary that China may wish to address this imbalance sometime soon.

    I’m weary of assuming that a 1:1 comparison works for China. When you import a tech gadget, does it get chalked up against China where it was likely manufactured, or does it get chalked up against the country of the head office of the representative company (samsung, apple, …).

    Vote: Thumb up 0 Thumb down 1 You need to be logged in to vote
  15. srylands (414 comments) says:

    Just following up on “smart green technologies”, this article in the Stanford Social and Innovation Review is worth a read.

    http://www.ssireview.org/articles/entry/picking_green_techs_winners_and_losers

    “Picking Green Tech’s Winners and Losers”

    “…Unless clean tech follows well-established rules of innovation and commercialization, the industry’s promise to provide sustainable sources of energy will fail.”

    The article points out the folly of government promotion of “green technology” that has no market acceptance. Governments can rarely lead this, and if they try, they get sucked into endless subsidies.

    Governments could promote green technology if scale reduced costs to the point where a technology became price competitive. However this is very risky, as it requires big subsidies, and confidence that the subsidy can be withdrawn and innovation will take off.

    But New Zealand is exactly the WRONG country to be adopting such a policy. We are small. It is totally mad that anyone would consider it.

    So what can government do?

    Well, what this government is doing:

    – Reduce trade barriers

    – Encourage innovation generally through a high performing education system.

    – Fund public interest science and R&D

    i.e the existing growth and innovation agenda.

    Probably more things could be done, but they should be enabling, and not involve picking particular technologies on the basis that they are somehow “good” while others are “bad”.

    There will be niche domestic and export markets in renewables and related technologies where New Zealand companies will succeed. Policy settings can make a real difference. But nothing I have seen from the Greens offers any sign that they understand the commercial realities of renewables technologies. Rather, they are in love with an idea because it makes them feel good. So they want to subsidise it. Behind the glib words like “smart green” that is all it is.

    New Zealand deserves better.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  16. Viking2 (11,571 comments) says:

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11261962

    On the back of dairy and logs and meat. Logs now fallen over, dairy on the decline.

    Vote: Thumb up 0 Thumb down 1 You need to be logged in to vote
  17. Sir Cullen's Sidekick (895 comments) says:

    Where are the Green initiatives, may I ask? Sustained green growth initiatives are the future….

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  18. peterwn (3,309 comments) says:

    srylands – re smart technology companies.

    There is an outfit called Rakon which is supposed to be just that – however it is generally regarded as a dog.

    Presumably Green Party people keep hearing from bitter and twisted greenies that they cannot put their fantastic ideas into effect because of the mean old bank managers with a glassy ‘I am going to say no’ look in their eyes. Seems that John Key, Bill English and Stephen Joyce take the attitude that if you cannot get your idea past a gimlet eyed bank manager, it is likely to be a turkey and they are unlikely to be off the mark.

    So the Green Party will set up this fantastic bank with money plundered from Kiwisaver and the taxpayer to facilitate these fantastic industries and after several years it will all collapse into a burning heap. Remember the ‘Development Finance Corporation’ anyone. Remenber too the BNZ collapsed twice in its history – first time the Government bailed it out and it was supposed to be a similar ‘instrument’ as the Greens propose, then it collapsed again the the late 1980’s after loose lending (by whiz kids in the regional offices – the lending by the traditional bank managers was OK).

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote