Fairfax Media Network

Weather News

NZ drought could expose Pacific economies: ANZ

Wednesday March 27, 2013 - 13:54 EDT

New Zealand's worsening drought could expose the Pacific region to food price inflation according to a report from the Australia and New Zealand Banking Group Limited.

The ANZ bank's latest forecast suggests Fiji and Samoa are the most likely to be affected by the New Zealand drought, the country's worst in 30 years.

New Zealand-based agriculture economist with the ANZ, Con Williams, told Radio Australia's that depending on the sector and product the drought could influence production for the next two years.



"If you're talking about the livestock sector, they're running down some of their capital stock at the moment because of the drought," Mr Williams said.

"That's going to influence production for the next two years."

Mr Williams says the horticulture sector would recover more quickly if the drought breaks and conditions improve.

The ANZ's report says the economies in Pacific countries could be affected.

The bank says Fiji in particular is growing at a slower pace to similarly rated countries.

"Higher inflation, particularly food inflation, will weigh on other consumption in the Fijian economy," Mr Williams said

"That won't be good for their overall growth profile."


- ABC

© ABC 2013

More breaking news

Sydney Morning Herald
ABC News
National Nine News
News Limited

Display Your Local Weather

Weather News

Sydney ends record dry spell

15:41 EDT

Sydney's record-breaking dry spell has come to an end as the heaviest rain in at least 2-3 months soaks parched parks and gardens across the city.

Damage bill from heavy rain around Bundaberg region 'to reach up to $30m'

15:13 EDT

The damage bill from the recent heavy rain and flooding across Queensland's Wide Bay-Burnett region is expected to reach up to $30 million.

School buses driven through floodwaters after Bundaberg deluge despite warnings

15:07 EDT

Police are investigating after two school buses were caught on camera driving through floodwaters near Bundaberg in southern Queensland.