Reduction In Demand For N.Z. Exports In U.K. Forecast

Press, Volume XCIX, Issue 29102, 14 January 1960, Page 11

Reduction In Demand For N.Z. Exports In U.K. Forecast

(New Zealand Press Association)

AUCKLAND, January 13. The coming year may bring a reduction in the demand for New Zealand’s exports in Britain, according to “Management,” the official journal of the New Zealand Institute of Management. The magazine also forecasts fewer New Zealand timber exports to Australia.

It says that 1960 will see the beginning of a drive by Western European countries into world markets. New Zealand can expect more machinery, equipment, and vehicles from Western Europe, as well as greater variety in textiles and processed raw materials

“Western Germany is proving to be second only to the United States among the capitalist countries. The economy of France is also—surprisingly—-on a sound basis.” says the magazine in its business forecast. The result of this, it adds, is greater competitive power against Great Britain. “We in New Zealand can expect a further drive for lower costs in the United Kingdom. This means, by and large, a halt in the demand for our exports, and could mean a falling off. It all depends on how successful the United Kingdom is in deflating.” Turning to Australian trade prospects. -“Management” says Australia is not opening up on imports of interest to New Zealand. such as paper, pulp or frozen vegetables Australia is. however, opening up on the import of timber from the dollar area and while this will be a blbw to the Australian timber producer, it will also affect New Zealand’s timber industry.

“We shall, fa 1960,” it says, “have to be more competitive

with North American softwoods. This means both improved quality and lower prices. “On the whole, however, New Zealand is on its feet again. Imports for the first quarter of 1960 should come in at a high rate. Unless prices fall in 1960 our economy and reserves should be in a good position.”