NZ Trade Set To Outperform World Trade Growth By 2025

PRESS RELEASE

12 October 2011 For immediate release

New Zealand Trade Set To Outperform World Trade Growth By 2025 –

HSBC urges NZ businesses to capitalise on international opportunities -

New Zealand’s trade over the next 15 years looks set to grow by 83%, outperforming world trade growth which looks set to grow at the slower pace of 73% during the same period according to HSBC. These predictions form part of the new quarterly global forecast HSBC Trade Connections.

Despite the difficult current economic climate, New Zealand’s trade is set to grow 6.33% by the end of 2012 and over the next five years at an annualised rate of 3.76%. Over the next 15 years the growth in trade represents an increase from the current value of USD$52.86 billion to USD$96.97 billion in 2025*.

These findings, along with other global predictions, have been reported overnight at HSBC’s Trade Summit in Hamburg. HSBC Trade Connections focuses on how the share of world trade will change for 37 countries over the next five, 10 and 15 years, and is the first comprehensive exploration of the future opportunities for businesses operating internationally. HSBC Trade Connections combines trade data from around the world with lead indicators of world trade and macro-economic trend information.

Gary Cross, Head of Trade and Supply Chain, at HSBC New Zealand says: “Recent global events have left New Zealand businesses feeling uncertain, but one thing is clear - for Kiwi business that are looking to grow, international trade is a real opportunity for the future. In the next year alone, New Zealand’s trade is set to grow by 6.33% and over the next five years at an annualised rate of 3.76% - well ahead of world annualised growth of just 2% over the same period.”

“New Zealand importers and exporters need to prepare themselves now for the expanding trade markets across the world – especially within Asia Pacific and other emerging markets. They need to mitigate the risks of trading internationally, find the right support to capitalise on the global growth in trade, and have the right strategic partners in place to be successful,” continues Cross.

New Zealand’s fastest growing trade corridors

At the end of 2010, New Zealand’s five largest export partners were Australia, China, the USA, Japan and Germany. It is predicted that trade with all five countries will grow in volume terms over the next 15 years with the exception of Japan. Australia looks set to remain our largest trading partner by value in 2025, increasing in total trade from USD$12.6billion to USD$17.3 billion – an increase of 37.3% over the next 15 years.

In addition, far stronger trade routes look set to emerge with Argentina, China, India and Indonesia, reflecting the importance of New Zealand as an agricultural producer with strong trade routes to Asia and South America.

Trade with Argentina looks set to grow at an annualised rate of 10.06% over the next 15 years, with Russia by 9.42%, India 8.36% and China at an annualised rate of 6.68%.

“New Zealand does a great job of trading with Asia Pacific but we haven’t even begun to tap the potential of other emerging markets across the globe. With New Zealand at the half way point geographically between Latin America and Asia we have a real opportunity to act as an intermediary between the two of the world’s fastest growing markets,” concludes Cross.

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