Beware The Trade Lags

NZ’s May trade statistics were another strong set of figures. This is a continuation of recent results with familiar themes, namely: booming primary exports associated with massive exports to China (31% y/y) and solid import demand on a buoyant domestic economy. Such things are showing up in the macro figures as strong economic growth and a shrinking current account deficit. Beware the lags! Past performance may not be a good guide to the future

Read the full report: Economic Research