NZ: Q4 terms of trade rose by 5.7% - TDS

Analysts at TDS note that the New Zealand’s Q4 Terms of Trade rose by +5.7%/qtr (mkt 4.0%) and the export volumes fell 5.8%/qtr while import volumes rose 1.2%/qtr and so net trade eats into their GDP forecast (from +1.2% to +0.9%). 

Key Quotes

“In an unusual interview before his (newly announced) speech tomorrow, RBNZ governor Wheeler raises concerns on the new Trump administration’s protectionist policies. He was quoted that even if NZ exports to US are not tariffed, NZ will be hit by the downturn in the global economy and spillover effects from changes in trade flows.  NZD weakened and underperformed on this sentiment.”