Friday, March 29, 2024

Exports outlook gets brighter

Avatar photo
The global economic and trade fallout from covid-19 looks less dire than predicted for this year, a Foreign Affairs and Trade Ministry global markets report says.
Reading Time: 2 minutes

While the global response to covid-19 remains the primary trade and economic issue affecting exporters, actual statistics are shining a brighter light on the economic outlook.

The report highlights the global economic and trade situation pertaining to New Zealand businesses on July 1.

While there continues to be no formal restrictions on market access for most goods exports and imports because of covid-19 the pandemic is putting intense pressure on global supply chains and disrupting trade flows.

Some countries have put export restrictions on medical products and some on staple foods, including wheat and rice. 

A World Trade Organisation update says G20 economies have adopted 93 trade related measures linked to covid-19.

But while trade volumes fell steeply in the fist half of 2020 they are unlikely to reach the worst-case scenario of a 32% contraction projected in April.

WTO statistics show the volume of merchandise trade shrank by 3% year on year in the first quarter with initial estimates for the second quarter indicating a year on year drop of about 18.5%.

The World Economic Outlook predicts the global economy will shrink 4.9% in 2020, a downward revision of 1.9% from its April forecasts.

The impact of covid-19 on food security and supply chains and the role of trade in economic recovery are being discussed with NZ actively engaged and continuing to advocate strongly for maintaining trade flows and upholding the rules-based trading system.

NZ and Britain, NZ’s sixth largest trading partner in 2019, have formally launched free-trade negotiations with the first round of talks July 13-24.

Two-way trade between NZ and Britain totalled almost $6 billion in 2019. 

Comparing provisional NZ goods trade data for the fortnight ending June 24 with the equivalent fortnight in 2019, total exports to all countries were down 1.3% from $2.34b to $2.309b.

Total imports from all countries were down 12.3% from $2.276b to $1.996b.

Provisional data for May indicates exports fell by 5.8% and imports by 20.6%.

NZ Trade and Enterprise has launched an interactive digital portal of insights and tools for all NZ exporters.

The portal includes access to comprehensive market guides, learning modules, research and content on trends and topical issues, export stories and information on regulations and compliance. 

Former NZ special agricultural trade envoy Mike Petersen described the report as valuable.

“It has a lot of rich content, especially for our exporters who are not able to travel to these countries at this time and especially so for the food and beverage trade.”

Petersen said the report, compiled by NZ’s foreign trade networks, is a valuable snapshot of the situation on the international scene.

“I think it’s a great initiative with really valuable insight and all the information pulled through from our NZ embassies offshore in one place to help understand what’s happening around the world.

“It’s especially valuable for the markets such as China that are particularly key to our trade in this pandemic recovery,” Petersen said.

MFAT also wants feedback from NZ exporters as it continues to refine content for future reports.  

MORE:

Read the report at  mfat.govt.nz
Total
0
Shares
People are also reading