As for the appreciation of foreign currencies, while the first thing that comes to our minds is an increase in exports, one should be reminded of an increase in foreign tourists in Japan, which is also an important factor for expanding domestic services demand (Chart 6). We know that the number of foreign tourists has been rising more recently (Chart 7).
New Zealand economic activity has benefitted from commodity prices and export volumes for our exports of goods holding up. Internationally people have continued to demand New Zealand’s soft commodities (Figure 5). Asset prices globally have also risen, assisted by low interest rates and pockets of significant outperformance in the technology-driven sectors.