LIMA -(Dow Jones)- An increase in trade is essential to lift New Zealand out of recession, newly-inaugurated Prime Minister John Key said Friday.
"As a country, we are acutely aware of the impact the unfolding financial crisis will have on our trading partners, on our export industries and our own growth prospects," he said at the Asia-Pacific Economic Cooperation forum meeting in Lima. "New Zealand knows very well that one of the critical factors for getting out of this current downturn will be our ability to trade our way out of it."
New Zealand has been in recession since the start of the year.
Key called for aggressive efforts by world economies - particularly G-20 nations - to push for trade liberalization, especially by concluding Doha Round trade talks in Geneva.
"We are a small cog in the global economy and we know that the only way we can lift our living standards is by growing our role in global markets," Key said.
Key also railed against a boom of "easy" credit coming from overseas and said it could not be contained by monetary policy adjustments by The Reserve Bank of New Zealand.
"The capital was sourced mainly from offshore," Key said. "The results of these seemingly unlimited foreign capital flows was that New Zealanders were able to rely on cheap fixed-rate debt that drove housing prices even higher."
-By Leslie Josephs; Dow Jones Newswires; 511-98853-8610; peru@dowjones.com
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(END) Dow Jones Newswires
November 21, 2008 13:48 ET (18:48 GMT)

Publié le 21 novembre 2008 Copyright © 2008 Dowjones