Weekly Global Economic Report – 15 April 2024

Weekly Global Report:

Prepared by the Economic Division at the Ministry of Foreign Affairs and Trade.

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Trade and Economic updates

Domestic

New Zealand’s year in trade 2023
  • An upcoming Market Intelligence Report will explore the year in trade in 2023. By way of preview, while the value of New Zealand’s imports rose, slowing domestic demand led to a fall in the volume of merchandise imports in 2023. New Zealand’s trade deficit narrowed in 2023 by $5 billion but remained elevated at $12.5 billion. Despite the current economic challenges New Zealand's large trade deficit is heading in the right direction, with signs of resilience in key commodities and the Reserve Bank’s efforts to bring inflation back to target playing its part. More to come soon.
NZ makes the top 10 of EIU’s business environment ranking
  • The research and analysis division of the Economist Group, Economist Intelligence Unit (EIU), identified New Zealand among the top ten best places in the world to do business. The EIU noted that the group of ten’s status as advanced economies and long-standing strong performers makes them safe bets for investment, despite a slow growth outlook in the immediate future. The ranking is a positive indicator of the future of New Zealand’s growth. Read more here.(external link)
Call for NZ companies and investors to attend Indo-Pacific Climate Tech 100

Americas

Minister for Space travels to US to speak at Space Symposium
  • Minister for Space, Hon Judith Collins travelled to the United States from 8 to 12 April to attend the Space Symposium and promote New Zealand’s space industry and potential opportunities for cooperation. In a speech to the Space Symposium, the Minister highlighted New Zealand’s geographic advantages for space activity, as well as our business-friendly environment and broad aerospace sector. The Minister’s visit also included a range of business and investment related calls in Los Angeles and Denver, including the signing in Colorado of a Memorandum of Cooperation on Space and Technology cooperation with Colorado Governor Jared Polis.

North Asia

Trade and Agriculture Minister Todd McClay travels to Beijing, Harbin and Shanghai.
  • Minister McClay will travel to Beijing this week to meet with a number of his ministerial counterparts to discuss the full breadth of New Zealand’s trade and agricultural relationship with China. He will visit Shanghai and meet with New Zealand businesses in-market, including small and medium enterprises across food and beverage, health and nutrition, services, and logistics sectors. Minister McClay will also travel to Harbin in Heilongjiang province, a significant agricultural base in China.
  • China is one of New Zealand’s most significant trade and economic relationships and is an important destination for New Zealand’s products. This visit is an opportunity to further strengthen relationships, support Kiwi exporters and promote New Zealand businesses on the world stage. Minister McClay will return to New Zealand on 19 April.
Korea holds National Assembly Election
  • In the highest election turnout since 1992, 67 percent of eligible voters went to the polls in South Korea last week to have their say in the National Assembly Election. The final result saw the main opposition Democratic Party (DP) largely maintain its comfortable majority by winning 175 (previously 180) of the 300 seats. President Yoon Suk-yeol will be the first ever South Korean leader not to control a majority in the National Assembly for at least part of his presidential term.

Australia

Announcement of “A future made in Australia”
  • On Thursday 11 April, Prime Minister Albanese announced his vision for a “future made in Australia”. A new Act will go through parliament later this year, legislating direct government support to drive innovation and investment, with a focus on the energy transition. It is framed as Australia’s response to the United States’ Inflation Reduction Act and other like-minded nations implementing similar schemes. While Australia still intends to champion global markets and free trade, this reflects a growing willingness to make economic interventions based on “national interest and national sovereignty”. The Prime Minister has argued that "this is not old-fashioned protectionism or isolationism — it is the new competition". As well as new announcements, the new framework will bring together a range of policy initiatives already in train. These include the AUD$15 billion National Reconstruction Fund, the critical minerals strategy, and initiatives to bolster domestic manufacturing of batteries and solar panels.
Release of Food and Grocery Code Review interim report
  • On 8 April, the Australian government released the interim report of the Food and Grocery Code of Conduct independent review. Currently, there are no penalties for breaches of the Code, and because the Code is voluntary, supermarkets can opt out of provisions by overriding them in their grocery supply agreements. The report recommends that a mandatory Code apply to grocery retailers and wholesalers with revenue of $5 billion or more per annum, which would capture the current signatories – Aldi, Coles, Woolworths, and Metcash. Penalties of up to 10 percent of turnover for harmful breaches will apply. The final report recommendations will be delivered to the Government by 30 June 2024.
  • This review is a part of the Albanese Government’s broad competition reform agenda which includes an Australian Competition and Consumer Commission inquiry into supermarket prices, merger reform, and a comprehensive review of the nation’s competition policy settings. Read more here(external link).

Market reports released this week

External links

The following links may provide useful information to businesses:

NZTE(external link) has a website focused on providing COVID-19 information for exporters. They’ve also launched myNZTE(external link), an interactive digital portal of insights and tools available to all New Zealand exporters.

The Treasury releases a weekly economic update(external link) every Friday. Stats NZ has published a data portal(external link) with near real-time economic indicators.

MBIE publishes a sector reports series(external link) which provides regularly updated reports on all industry sectors that make up the New Zealand economy. These include official economic data and the challenges and opportunities that face New Zealand’s industry sectors.

Business.govt.nz(external link) provides tools and advice from across government to save small businesses’ time and help make the business a success.

MFAT has created a tariff finder(external link) which is designed to help goods exporters and importers maximise benefits from New Zealand’s Free Trade Agreements and compare tariffs in 136 other markets.

The all of government Trade Barriers(external link) website can be used to register any trade barriers experienced or issues exporting to an offshore market. Queries can be sent via the website or through the MFAT Exporter Helpline 0800 824 605. Enquiries will be sent to the government agency best placed to answer.

Tatauranga Aotearoa Stats NZ provides official data on the value of New Zealand’s exports and imports of both goods and services, by commodity type via the New Zealand Trade Dashboard(external link). This interactive dashboard is updated every quarter and allows for filtering by country and by commodity type.

More reports

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Disclaimer

This information released in this report aligns with the provisions of the Official Information Act 1982. The opinions and analysis expressed in this report are the author’s own and do not necessarily reflect the views or official policy position of the New Zealand Government. The Ministry of Foreign Affairs and Trade and the New Zealand Government take no responsibility for the accuracy of this report.

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