At the same time, reducing portfolios would have only a modest effect on financial markets. Currently, these portfolios are financed largely by the issuance of GSE debt, which, in turn, is held by investors.
Economies in the Asia-Pacific region (including Australia) account for around 60 percent of New Zealand’s merchandise exports by value, a significantly larger share than exports to the euro area (at just 7 percent). Europe accounts for a significant share of global economic activity, and is an important trading partner for many Asia-Pacific economies.