NZ: Q4 terms of trade at an all-time high - TDS

Analysts at TDS note that NZ’s terms of trade (+0.8%/qtr) hit an all-time high in Q4.

Key Quotes

“Broad-based export price strength (+4.9%/qtr) outpacing import prices at +3.9%/qtr,. In volume terms we pencil in a drag from trade (-1.5% pts) but capital goods imports go straight into business investment and our GDP tracking remains at +1%/qtr (RBNZ +0.7%).”