High food prices good for NZ

Quote of the week:

At times of rising food prices, the rest of the world must look at NZ  and see strong growth prospects, and the benefits from the world buying our products at higher prices are shared across the economy. The NZ dollar tends to follow broad movements in international commodity prices. Among the benefits of this are lower prices for imported goods, leaving more money to be spent elsewhere. In the upshot, the effect of high international foodprices is a net positive for the economy. “To think otherwise, would be like thinking higher oil prices are  a negative for Saudi Arabia. It would just not make sense.”  Economist Doug Steel in Trans Tasman.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: