New Zealand’s trading patterns have changed considerably in recent years. Our trade is increasingly oriented towards the Asia-Pacific region, both in terms of our exports and imports. This article examines changes in New Zealand’s trading patterns and provides details on how the Reserve Bank measures activity and inflation in our trading partner economies. To reflect recent changes in New Zealand’s trading patterns, the Reserve Bank has expanded the basket of countries that we focus on when examining international conditions. The Reserve Bank is conscious of the ongoing changes and uncertainties around the activity outlook in our trading partner economies. We will continue monitoring changes in trade patterns and make adjustments as required.