you are not logged in | login or join us

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

ABC News
Sydney Morning Herald
National Nine News
News Limited

Site search


Enter a postcode or town name for local weather, or text to search the site. » advanced search

North Coast experiencing one of the driest years on record

ABC image 13:16 EDT Parts of the Mid North Coast have had the best rainfall in months last night and today, Wednesday November 26, 2014, but it has not been enough to break the drought-like conditions gripping the region.

Help with Weatherzone