colinrealestate

The New Zealand economy is performing well compared to Europe, which is mired in a deepening recession and there is nothing on the horizon to change that picture.

Economic activity indicators are equal in importance to political developments in August as the former adds pressure to the latter.

With economic activity slowing globally, this trend is poised to reverse as soft commodities outperform hard commodities. Slowing global activity will mean less demand for the activity related commodities Australia produces, while a US drought boosts food prices.

Grain prices are an input into global food price indices and, given New Zealand producers are largely pasture-based exporters, they are isolated from input and stand to benefit from cost pressure affecting other producers.

Filed under: REAL ESTATE | Tagged: Real Estate