Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 


Downed Malaysian Plane Could Impact NZ Economy

MEDIA RELEASE: Wednesday July 23, 2014

Downed Malaysian Plane Could Impact NZ Economy

The shooting down of Malaysian Airways flight MH17 over Ukraine may yet have an impact on New Zealand’s economy, says a Russian economist from Massey University.

Associate Professor Sasha Molchanov says that while the tragic crash happened on the other side of the world, its impact on public sentiment and international relations will have global reach.

“An event like this can definitely affect New Zealand’s economy,” Dr Molchanov says. “Even thought the investigation is far from over, negative public sentiment is very strong and European and Australian-led sanctions are a distinct possibility.

“Our economy may also be hit by volatility in the global equity and exchange rate markets. Because risk sentiment is strong, and the New Zealand dollar is a high-yielding currency, it may experience a drop in demand.”

But Dr Molchanov says few New Zealand companies will be directly affected by the crash of MH17.

“New Zealand exports to Russia are fairly modest at about $260 million per year, or 0.5 per cent of our overall export volume, and it is unlikely that New Zealand will impose bilateral trade sanctions,” he says.

“Meanwhile, the free-trade agreement negotiations with Russia had already been suspended, thanks to the previous crisis in Crimea, although this latest incident will mean negotiations will not re-start any time soon.”

This is a blow to any exporters eyeing up the Russian market.

“Even though export volumes are currently small, they had been growing consistently until the eruption of tensions between Russia and Ukraine. The future of that export growth is now in jeopardy,” Dr Molchanov says.

He says exporters to politically-risky countries always face the prospect of their operations being compromised by an adverse political event, but the situation in Ukraine and Russia is particularly severe.

“One way to measure the severity of a political crisis is by the number of nations involved – and that number has increased dramatically in the wake of this crash.

“If there is a silver lining here, it is that the intense public pressure to investigate what happened to MH17 may help to bring hostilities to an end.”

- ends -

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

Eddie Izzard: UK Comedy Legend Returns

Hailed as one of the foremost stand up comedians of his generation. Star of stage and screen. Tireless supporter of charity. Runner. Political campaigner. Fashion Icon... February 2015, Eddie Izzard will bring his massive FORCE MAJEURE world tour to New Zealand with tickets going on sale at 10am on Tuesday 28th October. More>>

Festival Starts 28 Oct: Improv Fest Makes Up New Show

For any other festival, finding out less than two weeks from showtime that half the cast of a programmed show can’t make it to New Zealand would be a nightmare. Instead, the New Zealand Improv Festival Director Jennifer O’Sullivan saw an opportunity ... More>>

NZ Music Awards Finalists: Lorde, Sol3 Mio Top 2014 Tuis Charge

Lorde has taken the music world by storm during the past year and she co-leads the 2014 Tui charge with five finalist spots. Joining her is newcomer family opera trio, Sol3 Mio. They are followed closely by Ladi6 and David Dallas, both up for four awards each. More>>

From 'Luther' Creator: Major New Zealand Crime Series For BBC

Libertine Pictures and writer Neil Cross have teamed up with leading international TV producer Carnival Films to develop a major new crime series set in Rotorua. Libertine will develop the contemporary drama series with Carnival, producer of internationally-acclaimed British period drama Downton Abbey, for the BBC. More>>

ALSO:

Family Statement: Death Of Ewen Gilmour

“Ewen was a much loved and cherished member of our family, he was a larger than life character and by his very nature was kind, generous and always giving of his time to those who asked for his help." More>>

ALSO:

Auckland: St. Jerome's Laneway Festival - Line-Up Announced

Traversing seven cities and three countries, the festival has well and truly settled into its home in each state. From the grassy knolls and towering silos at home in Auckland, to the sparkling backdrop of the Maribyrnong... More>>

Scoop Review Of Books: No Longer An Island

Simon Nathan reviews 'Zealandia: Our Continent Revealed': The idea that New Zealand is part of a large submerged continent is not new... There was renewed interest in the extent of offshore New Zealand from the 1970s onwards with the start of offshore drilling for oil and gas, and this was given impetus by a UN agreement which allowed countries to claim an Extended Continental Shelf (ECS). More>>

Art: Simon Denny Recreates Kim Dotcom’s Personal Effects

Who owns what? How has the internet changed our relation to the world? These are two of the many questions Simon Denny raises in the latest exhibition at the Adam Art Gallery, opening on Saturday 4 October. More>>

ALSO:

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Education
Search Scoop  
 
 
Powered by Vodafone
NZ independent news