NZ: Expect a 3% rise in the Q2 terms of trade – Westpac

Analysts at Westpac are expecting a 3% rise in New Zealand’s terms of trade for the June quarter, taking it to a fresh 43-year high.

Key Quotes

“We estimate that export prices rose 3%, while import prices were flat.”

“The rebound in world dairy prices over the last year continued to flow through into export prices over the June quarter. We also expect a strong gain in meat prices and modest gains for most other commodity exports.”

“A slightly lower exchange rate over the quarter added to prices of manufactured goods imports. However, this is likely to be offset by a drop in oil prices.”