Isolated and exposed: can New Zealand’s fragile economic recovery withstand the global oil shock?

New Zealand economic growth tipped to overtake Australia’s this year but Middle East conflict casts a shadow over outlook

Just as New Zealand’s fragile economic recovery shows flickers of improvement – with economists predicting its annual growth could surpass that of its larger neighbour Australia – it is facing a new threat: the war in the Middle East.

New Zealand is particularly exposed to the energy shocks produced by the conflict – and to economic crises generally – with the small, isolated nation highly dependent on global trade and tourism. It is susceptible to disruptions in supply chains and shipping.