New Zealand to Outperform World Trade Growth, Says HSBC

22 February 2012
For immediate release

New Zealand to Outperform World Trade Growth, Says HSBC

- New trade corridors and demand for protein provides opportunities - Despite the difficult current economic climate, New Zealand’s trade is set to grow at an annualised rate of 5.88% over the next five years, outperforming world trade growth predicted to grow at the slower pace of 3.78% during the same period, according to HSBC.

The second quarterly HSBC Global Connections has just been released and predicts New Zealand’s trade growth to continue this positive trend long into the future. Between the years 2017-2021 growth is expected to rise to 7.28%, compared with world growth at 6.23%, leading to a 134% increase in New Zealand trade by 2026, when indexed against 2011.

HSBC Global Connections focuses on how the share of world trade will change for 37 countries over the next five, 10 and 15 years, combining lead indicators of world trade and macro-economic trend information.

Gary Cross, Head of Global Trade and Receivables Finance, at HSBC New Zealand says: “New Zealand is in the right geography and in the right industries to take advantage of accelerating trade trends. As millions more people within the emerging markets of the Southern Hemisphere move-up to the middle classes, demand for our agricultural, meat, wood and wine products can only increase."

New Zealand’s fastest growing trade corridors Although accelerated growth in Asia and Latin America will fuel New Zealand’s exports, Australia is expected to stay New Zealand’s largest export partner, with trade forecast to grow by 7.46% annually over the next five years. China, our second largest export partner, will grow more swiftly at 12.60% annually to 2016 while the USA, our third largest New Zealand to outperform world trade growth, says HSBC export partner will grow by 2.12% annually over the next five years. New Zealand’s top five fastest growing large export partners are all in the Asia Pacific region.

Demand within the agricultural sector will continue, with milk and cream, lamb and goat meat exports to emerging Asia dominating – milk and cream exports over the next five years to China are set to increase annually by 16.46%, to Singapore by 10.97% and to Malaysia by 9.08%. Exports to Peru, Venezuela, Cambodia and Bangladesh are all forecast to grow substantially over the next five years, predominantly in milk and cream products. New Zealand is also opening new international trade corridors in this sector with Africa.

“New Zealand businesses will have to concentrate on how they are going to match the speed needed to keep up with the pace of projected trade. The speed at which businesses will have to grow may seem challenging, but the reality is that growth opportunities for New Zealand lie internationally,” concludes Cross.

ends

HSBC_Global_Connections_New_Zealand_Feb_22_FINAL.pdf

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