Asian markets give New Zealand exporters confidence
Post Date: 01 Sep 2011 Viewed: 537
Asian markets are inspiring confidence in New Zealand exporters, despite the country's high exchange rate and recent high oil prices, according to a survey by an international logistics firm.
Seventy percent of the 350 exporters surveyed expressed confidence that export orders would rise in the coming year, with exporters to Korean, the Chinese mainland and Taiwan showing the most confidence, according to the 2011 DHL New Zealand Export Barometer.
High exchange rates and fuel prices, as well as the earthquakes in Christchurch, topped the list of factors that had negatively impacted exporters in the past 12 months, the survey found.
"The export industry has taken a hit due to several factors in the last few years, but there is a slow-burning confidence, with two thirds believing orders will increase over the next year," said DHL Express national sales manager for New Zealand Phil Corcoran.
The Rugby World Cup, which kicks off next week in Auckland, had helped, said Corcoran.
"Rugby World Cup 2011 has put a bit of energy into the sector, with 40 percent saying they believe it will have a positive impact on their business' bottom line."
Nine out of ten of those who believed it would have a positive impact said it would continue beyond 2011.
Exporters to Korea, the Chinese mainland and Taiwan were most confident of orders increasing, reflecting the growing reliance on Asian markets, with 68 percent saying orders from Korea would increase over the next year.
"Australia continues to be the top export destination. China has emerged as another top export destination in 2011 coming in ahead of North America, Europe and the UK for the first time," said Corcoran.
Online commerce was also opening up growth opportunities for exporters, he said.
"Half of the exporters surveyed reported an increase in the levels of online commerce they have undertaken in the last year. Although competition has increased, e-commerce is making it easier for exporters to reach out to a wider market and will help many businesses react to opportunities in a timely and efficient way," Corcoran said.
In contrast, the DHL Australia Export Barometer showed the strong dollar and natural disasters had significantly dented the confidence of Australian exporters.
"Interestingly, only 48 percent of Australian exporters expect an increase in orders over the next 12 months, compared to 70 percent in New Zealand."
The release of the survey Thursday followed a report by the independent New Zealand Institute of Economic Research, which forecast economic growth of 1.4 percent this year and 2.6 percent next year, but warned a renewed global slowdown could endanger the recovery of New Zealand's export dependent economy.