Further slide in export results

The latest provisional export figures for October show a continuing decline whatever way you look at them, says National’s Trade spokesperson, Lockwood Smith.

“Exports for October were down 8.7 per cent on the previous year, they were down 8.5 per cent for the October quarter, and down 4.4 per cent for the year ending October.

“This is only the second time in the last 11 years we have seen a decline in the value of our exports year on year. What makes it more damaging for the Government is that in its first two years, exports grew by 20.7 per cent and 17.5 per cent respectively.

“That tremendous export growth from record commodity prices and a collapsed New Zealand dollar gave Labour a huge economic boost. But its collapse from two years of 20 per cent growth to a 4 per cent reduction will impact on the economy sooner or later.

“Prospects for exports don’t look great with the exchange rate having climbed 12.4 per cent (TWI) in the last 12 months. What’s more, some commodity prices continue to slide with bull beef now down almost 30 per cent on a year ago. Dairy products, such as skim milk powder, also remain 20 to 30 per cent below what they were a year ago.

“If it wasn’t for the massive levels of immigration boosting growth this year, the Government’s unwise economic moves would be hurting more. But while immigration does drive the economy the trade deficit will worsen.

“The result for October at 27.6 per cent is the highest for an October month in the last 13 years”, says Dr Smith.

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