| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-714M | NZ$-1,954M | NZ$-2,113M |
| Imports - M/M | -9.8% | -10.9% | 10.4% |
| Imports - Y/Y | 0.7% | 25.6% | 25.5% |
| Exports - M/M | -6.4% | 5.1% | 2.8% |
| Exports - Y/Y | 0.8% | 13.9% | 10.4% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$2,113 million in January to NZ$714 million in February. Exports and imports both fell sharply on the month after previous increases, largely reflecting the impact of disruptions to trade flows caused by severe tropical cyclones during the month. A major New Zealand port, Napier, was particularly impacted as a result of damage to major infrastructure in the local area.
Exports fell 6.4 percent on the month in February after advancing 2.8 percent in January with year-over-year growth slowing from 10.4 percent to 0.8 percent. Exports of meat and fruit fell sharply on the year, while exports of dairy products and forestry products recorded only modest growth. Exports to Australia, the United States, Japan, and the China rose on the year, offset by declines in exports to the European Union, South Korea and most other Asian markets.
Imports fell 9.8 percent on the month in February after increasing 10.4 percent in January, while year-over-year growth slowed from 25.5 percent to 0.7 percent. Imports of petroleum and products rose on the year, reflecting the impact of the closure of New Zealand's sole domestic oil refinery in April 2022, but most other major categories of imports fell on the year. Imports from Australia, the United States, and the European Union rose on the year, offset by year-over-year declines in imports from China and Japan.
Exports fell 6.4 percent on the month in February after advancing 2.8 percent in January with year-over-year growth slowing from 10.4 percent to 0.8 percent. Exports of meat and fruit fell sharply on the year, while exports of dairy products and forestry products recorded only modest growth. Exports to Australia, the United States, Japan, and the China rose on the year, offset by declines in exports to the European Union, South Korea and most other Asian markets.
Imports fell 9.8 percent on the month in February after increasing 10.4 percent in January, while year-over-year growth slowed from 25.5 percent to 0.7 percent. Imports of petroleum and products rose on the year, reflecting the impact of the closure of New Zealand's sole domestic oil refinery in April 2022, but most other major categories of imports fell on the year. Imports from Australia, the United States, and the European Union rose on the year, offset by year-over-year declines in imports from China and Japan.
Definition
The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. Trade balance values are calculated by deducting imports (cif) from exports (fob).
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the NZ dollar in the foreign exchange market. Imports indicate demand for foreign goods in New Zealand. Exports show the demand for NZ goods in countries overseas. The currency can be sensitive to changes in the trade deficit run by New Zealand since this trade imbalance creates greater demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation.
