New Zealand and Australian Businesses Report Higher Costs and Risks From Middle East Conflict
A new survey showed the Iran war is significantly raising costs for businesses in New Zealand and Australia. Forty-eight percent of New Zealand firms reported freight delays, compared with 32% in Australia.
Business organisations told RNZ that supply chain uncertainty stemming from the Iran war is putting growing financial pressure on companies in New Zealand and Australia. The survey found 48% of New Zealand firms reported freight delays, against 32% in Australia.
A significant share of businesses said they have started passing rising fuel, insurance and shipping costs into their sale prices. The report indicated that margins for small and medium-sized firms have tightened sharply, with revenue losses becoming visible at export-oriented manufacturers.
The Reserve Bank of New Zealand and the Reserve Bank of Australia warned in their latest bulletins that geopolitically driven cost pressures could affect the inflation outlook. Analysts say a prolonged war could push back the timing of rate cuts in both economies.
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