New Zealand Trade Deficit Shrinks In November

Sponsored Links

New Zealand's trade deficit narrowed more than expected in November with the fall in imports outpacing the slump in exports, a report released by Statistics New Zealand showed on Thursday.

New Zealand recorded a trade deficit of NZ$269 million in November compared to the NZ$495 million deficit in the previous month. Economists were looking for a deficit of NZ$299 million. This is the sixth straight month in which New Zealand has posted a trade deficit.

Exports were valued at NZ$3.1 billion, down 16.7% from the same month of the previous year, slowing from the 22.6% fall in the preceding month. Imports, on the other hand, amounted to NZ$3.3 billion in November, down 22% from a year ago.

The fall in exports was widespread, with exports of commodities such as milk powder, butter & cheese and casein & caseinates being the most significant contributors to the decline. Exports of milk powder, butter & cheese showed the largest decrease, down 24.9% year-over-year, led by lower prices of unsweetened whole milk powder, although volume rose 48%. On the other hand, exports of crude oil showed the largest increase, up 88.7%.

The fall in imports was also widespread with petroleum & products and mechanical machinery & equipment being the most significant contributors. Mechanical machinery & equipment recorded the largest decrease, down 25.9% in November. Increases in imports were fewer and smaller, the largest being vehicles, parts & accesories, up 4.9%.

By country of destination, exports to the U.S. plummeted 46.7% led by lower dairy exports. Exports to Japan were down 43.5%, while the largest increase in exports were those to Australia, up 8.3%.

On the import side, the most significant decrease in imports were from the U.S., down 35.1%. Imports from China decreased 20.7%, while those from Qatar were down 69.3%.

Exports for the three months ended November period amounted to NZ$8.9 billion, down 17.1% from the corresponding period of the prior year. For the same period, imports were worth NZ$10.2 billion, down 24.7% from a year ago.

The New Zealand dollar was little changed following the release of November's trade report, but better than expected retail sales and trade data from Australia helped the kiwi reach a 21-month high against the euro and new multi-week highs against the greenback and the yen. However, the kiwi was unable to sustain its uptrend and fell around 7:35 pm ET.

New Zealand's trade deficit narrowed more than expected in November with the fall in imports outpacing the slump in exports, a report released by Statistics New Zealand showed on Thursday. (Market News Provided by RTTNews)