The good economic news just continues to roll in.
This is the problem that will face Labour as the economy continues to boom.
New Zealand’s merchandise terms of trade rose 7.5 percent in the September 2013 quarter, Statistics New Zealand said today. The latest increase was due to export prices for goods rising more than import prices.
“Dairy export prices helped lift the terms of trade to their highest level since 1973,” prices manager Chris Pike said. “Both the terms of trade and export prices have been on the rise since the start of this year, reflecting higher dairy prices.”
Terms of trade is a measure of the purchasing power of New Zealand’s exports abroad. An increase means New Zealand can buy more imports for the same amount of exports. Read more »