Weekly Global Economic Round-up - 10 June 2022 | New Zealand Ministry of Foreign Affairs and Trade

Weekly Global Report: June 2022

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

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Highlights

Prime Minister Jacinda Ardern is travelling travel to Sydney this week for an in-person meeting with new Australian Prime Minister, Anthony Albanese. The Prime Minister left New Zealand late Thursday afternoon, 9 June, and will return the evening of Friday, 10 June.
China has begun easing its COVID-19 restrictions with all Shanghai residents able to exit their residential compounds on 1 June and public transport resuming in Beijing. Despite easing COVID-19 restrictions, according to media reports Chinese Premier Li announced to party leaders that China’s GDP may decline in Q2, due to COVID disruptions in April and May.
Minister Chris Hipkins travelled to Denver last week in his capacity as Minister of Education to speak at the annual NAFSA: Association of International Educators expo to promote New Zealand as an attractive study destination ahead of the border reopening on 31 July. Minister Hipkins also travelled to Sao Paulo and Santiago after Denver to strengthen educational links with Brazil and with Chile.

Regional Updates

Domestic Updates

Minister for Trade and Export Growth Damien O’Connor has tested positive for COVID-19. This comes as Minister O’Connor was about to travel to the Organisation for Economic Cooperation and Development (OECD) in Paris and World Trade Organization’s (WTO) 12th Ministerial Conference (MC12) in Geneva. Minister O’Connor still hopes to attend WTO MC12 provided all goes well with his isolation.

Australia and the Pacific

Australia’s central bank increased its policy rate by 50 basis points to 0.85 percent. This surpassed many expectations of 25 or even 40bps hikes. The central bank has indicated further increases remain likely as the Reserve Bank of Australia seeks to combat rising inflation.
Samoa has moved its lowest alert level and has ended the State of Emergency order after more than two years of COVID restrictions. Businesses are able to operate under normal opening hours; fishing crews are now permitted to take shore leave while offloading catches and replenishing supplies; daily flights between American Samoa and Apia have resumed; and face masks, social distancing and good hygiene are recommended but not mandated. Isolation requirements for incoming travellers have been dropped, and restrictions on commerce and movement have been removed.
Samoa Prime Minister Fiame Naomi Mataʻafa will visit Aotearoa New Zealand next week, 60 years after the signing of Treaty of Friendship between the two countries.
Foreign Affairs Minister Hon Nanaia Mahuta has confirmed Aotearoa New Zealand is providing further economic support to the Pacific to strengthen economic resilience in response to the impact of COVID-19. Up to $75m in additional economic support is provided in Budget 2022.

Asia

One of MFAT’s market insight reports for this week focuses on opportunities for New Zealand in Viet Nam. Viet Nam’s recent economic development has propelled it, in just one generation, from being one of the poorest countries in the world to an (almost) middle-income country. The burgeoning middle class exhibits increasingly sophisticated consumer behaviour, including for foreign-sourced products, and in its demand for education services. Political stability, and the long-term economic outlook present strong opportunities for New Zealand businesses. Viet Nam’s dynamic and quickly-evolving commercial environment has emerged as a promising retail market for New Zealand exporters seeking to expand and diversify offshore.

Americas

The US and Taiwan launched negotiations on a new trade initiative, ‘the US – Taiwan Initiative on 21st Century Trade. The initiative is not a traditional trade agreement and aims to “develop concrete ways to deepen the economic and trade relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses” between the US and Taiwan.
Japan has reached an agreement with the US to allow greater market access for US beef into the Japanese market. The agreement revised the existing beef safeguard mechanism to allow “US beef exporters to more reliably meet Japan’s growing demand for high quality beef”, according to US Trade Representative Katherine Tai.

Africa

The head of the African Union and President of Senegal, Macky Sall, said he was “reassured” after his meeting with Russian President Vladimir Putin in Sochi on Friday to discuss unblocking Black Sea trade routes. The impact of the war on exports from Ukraine is particularly affecting the movement of cereal and fertiliser to African countries, highlighting the breadth of the emerging food security crisis.

Europe

Earlier this week Minister Mahuta announced(external link) a further package of sanctions targeting forty-four entities (thirtyeight Russian entities and six Belarusian entities). The focus of these entities is state-owned or partly-owned enterprises that either contribute to Russia’s export revenue (notably oil and gas company Gazprom) or are significant parts of the Russian military-industrial complex.

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

View full list of market 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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Weekly Global Economic Round up 10 June [PDF 647 KB]