26 Sep 2011

PM says NZ economic position better than others

9:37 pm on 26 September 2011

Prime Minister John Key says New Zealand is in a good position to weather the turmoil in the United States and European economies.

Mr Key says the US and Europe could be in for a tough time in the coming months and New Zealand is not immune from the situation.

However, he says New Zealand's position, relative to many other economies, is not all doom and gloom.

"I still think our corporate balance sheets are much stronger; we're in better shape in terms of commodity prices.

"We're not immune from what's happening in the world, but most countries would trade their position with New Zealand and take our position any day."

Mr Key says the Government has had to borrow far less this year than it did in 2010.

His comments came as there are signs demand for New Zealand's exports are faltering.

Chinese imports of milk powders slumped 42% in August, although this has yet to show up in official figures. Exports overall were down 4% in the month.