Exporters Congratulated on Outstanding Effort

Provisional trade figures showing a 7.7% increase in exports in July 1998 compared with July 1997 are of tremendous credit to New Zealand exporters, Trade Minister Lockwood Smith said today.

"With many exporters hit by the Asian Economic Crisis, this effort is outstanding," Dr Smith said. "Our exporters have responded magnificently and deserve every New Zealander's congratulations. They are leading the return to sustainably high levels of economic and job growth."

The provisional figures suggest merchandise exports in July 1998 were $1.9 billion, compared with $1.8 billion in July 1997, a 7.7% increase. If confirmed, the result would mean New Zealand has enjoyed our best July trade balance since 1992.

On an annual basis, the figures suggest exports have increased to $21.9 billion in the year to 31 July 1998 compared with $21 billion in the year to 31 July 1997, a 4.2% increase.

Dr Smith said the positive result showed the Government's economic policies allowed exporters to respond quickly to a changing global economic outlook.

"First, in free market New Zealand today, our dollar has adjusted automatically as a result of our balance of payments deficit.

"Second, the Government's policies of price stability, sensible spending policies, an innovative labour market, a low-rate, broad-base tax system and an open, competitive economy provide a business environment which allows exporters to respond quickly to changing market conditions.

"And, third, the Government's policies to improve the environment for business through microeconomic reform will ensure we keep ahead of the international productivity race."

Dr Smith said the outstanding performance showed the importance of New Zealand staying on its current economic track and rejecting the Alliance-Labour policy agenda of returning to our highly regulated, highly protected and highly-taxed past.

"We now have an economy in which we can weather external events like the Asian turmoil. Why would we want to return to our 1970s past?"

Today's trade figures from Statistics New Zealand suggest that in the year to 31 July 1998 exports fell to Japan (5.1%), Korea (23.7%), Malaysia (13.1%) and Thailand (15.3%), compared with the year to 31 July 1997.

However, the figures also suggest that over the same period, exports to the United States increased by over half a billion dollars to $2.6 billion, or by 26.8%. Other markets where New Zealand exporters substantially increased sales were the Hong Kong Special Administrative Region (8.9%), China (5.2%), Germany (17.1%), Belgium (48.9%), Italy (36%), Singapore (34.6%), Mexico (31.1%) and Fiji (9.3%). Exports to destinations unknown through the EU increased 18.6%.

Final figures released today by Statistics New Zealand also show that exports in the year to 30 June 1998 were up 3.3% to $21.7 billion, compared with $21 billion in the year to 30 June 1997.