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Australia-New Zealand (ANZ) Banking Group Limited general manager Norman Wilson believes the Pacific and the Asia are coming closer as trade is shifting more towards Asia.
Speaking at the Fiji Economy Update 2010, Wilson highlighted the historical trade flow between Asia and the Pacific was around 15 percent.
“This has however, grown by 25 percent per year for the past five years,” he said.
“Trade between China and the Pacific grew by more than 30 percent every year between 2001 and 2008.”
Wilson added in financial terms, this meant an increase from $180 million in 2001 to more than $2.1 billion in 2008.
“In the past decade, China’s exports into the Pacific have passed exports from the United States, European Union and Japan,” he said.
Wilson further stressed the trade flows from the Pacific into Australia are worth more tha US$1700 million each year.
“Trade flows from Australia to the pacific have increased from US$900 to more than US$1500 million in the past 20 years,” he indicated.
“Trade flows from the pacific into New Zealand are worth more than US$80 million per year while New Zealand trade to the pacific has more than doubled in the past 20 years.”
He believes the global financial crisis was tough for economies and the countries globally.
“The governments in Europe ran out of money, in particular, Portugal, Ireland, Italy, Greece and Spain have a difficult road ahead and will have at least another year of no economic growth."
“Naturally, the Pacific wasn’t immune; growth slowed and remittance dropped-for example, remittance to Tonga reduced by around 20 per cent in the 2009 calendar year."
“But the recovery has begun and pace of activity is picking up, although it remains uneven across the region,” he said.
By Rachna Lal
