| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$427M | NZ$-1,273M | NZ$-1,586M |
| Imports - M/M | -1.1% | 12.0% | 12.2% |
| Imports - Y/Y | 12.0% | 10.2% | 11.4% |
| Exports - M/M | 7.9% | 8.4% | 6.1% |
| Exports - Y/Y | 10.4% | 0.6% | -2.8% |
Highlights
New Zealand's merchandise trade balance shifted from a deficit of NZ$1,586 million in March to a surplus of NZ$427 million in April. This is the first surplus since May 2022. Exports recorded a bigger increase on the month, but imports fell after a sharp increase previously.
Exports rose 7.9 percent on the month in April after advancing 6.1 percent in March, with year-over-year growth strengthening from a decline of 2.8 percent to an increase of 10.4 percent. Exports of dairy products recorded a strong year-over-year increase, with exports of meat, forestry products and fruit also advancing at more moderate rates. Exports to Australia, the United States, and the China rose on the year, offset by declines in exports to the European Union, Japan, and South Korea.
Imports fell 1.1 percent on the month in April after increasing 12.2 percent in March, while year-over-year growth picked up from 11.4 percent to 12.0 percent. Petroleum imports again recorded very strong year-over-year growth, reflecting the impact of the closure of New Zealand's sole domestic oil refinery in April 2022. This impact should start to fade from May. Other major categories of imports posted mixed results. Imports from Japan, the United States, and the European Union rose on the year, offset by year-over-year declines in imports from Australia and China.
Exports rose 7.9 percent on the month in April after advancing 6.1 percent in March, with year-over-year growth strengthening from a decline of 2.8 percent to an increase of 10.4 percent. Exports of dairy products recorded a strong year-over-year increase, with exports of meat, forestry products and fruit also advancing at more moderate rates. Exports to Australia, the United States, and the China rose on the year, offset by declines in exports to the European Union, Japan, and South Korea.
Imports fell 1.1 percent on the month in April after increasing 12.2 percent in March, while year-over-year growth picked up from 11.4 percent to 12.0 percent. Petroleum imports again recorded very strong year-over-year growth, reflecting the impact of the closure of New Zealand's sole domestic oil refinery in April 2022. This impact should start to fade from May. Other major categories of imports posted mixed results. Imports from Japan, the United States, and the European Union rose on the year, offset by year-over-year declines in imports from Australia and China.
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.
