Economists cautious over strong terms of trade

Economists cautious over strong terms of trade
Paul McBeth
Economists are wary of a pullback in exports after New Zealand’s terms of trade chalked up their second-highest level ever in September.The measure shows the purchasing power of New Zealand exports relative to imports, and was up 1.9 percent in the September quarter, well ahead of the 1 percent lift economists expected and the biggest quarterly increase since March 2016.Stats NZ business price manager Bryan Downes said the improving terms of trade were due to sharp increases in prices for exported meat and dairy products, even as export volumes...

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