Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Change From Commodity Focus Required

10 April 2001

CHANGE FROM COMMODITY FOCUS REQUIRED


"The release of the NZIER Quarterly Survey of Business Opinion today shows the domestic economy is much weaker than has been indicated by financial sector analysts", said Simon Carlaw, Chief Executive of the New Zealand Manufacturers Federation.

"These analysts were confident that a strong primary commodity sector meant the New Zealand economy could grow strongly, even though the growth outlook in our trading partners has deteriorated significantly.

"Primary commodity export returns have increased strongly in nominal terms but the weak exchange rate has also meant imports, particularly oil, have cost more. Activity levels have looked good in rural areas and provincial centres, but the main metropolitan centres, which now dominate economic activity, are weak.

"The weak exchange rate means manufacturers still expect to achieve some export growth, despite the downturn in our overseas markets. However, if New Zealand is to achieve a higher level of sustained economic growth, the manufacturing sector needs a better basis for competitiveness than simply a weak exchange rate.

"The current outlook is not good, with firms' growth constrained by a lack of labour and plant capacity. Investment intentions are very weak due to the decline in the outlook for the business environment. In part at least, Parliament has yet to move on from its focus on commodities. Yesterday's dairy industry decisions, for example, will mean that manufacturers adding value to dairy products still cannot decide their own export strategies.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark… More>>

ALSO:

Cut Before Using: Australian Strawberries Withdrawn

Needles were found in a punnet of strawberries sourced from Western Australia, which was bought in a Countdown supermarket in Auckland. The Choice brand of strawberries was sold nationwide last week. More>>

ALSO:

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>