But as oil prices rise, this places pressure on inflation not just in New Zealand, but globally, risking a bursting of the commodity boom just like the 2007–08 event. Indeed if oil prices escalate beyond $ for long, growth in much of the world will suffer again. As trade relationships change this creates opportunities for New Zealand exporters.
For example, Australia supplying meat to Asia and Russia leaves a gap for New Zealand to export beef to the US market; while prices for New Zealand forestry have benefitted from regulatory controls implemented in the Russia Federation that have created a shortage of logs for Chinese markets, increasing the price of New Zealand logs.