| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$46M | NZ$427M | NZ$236M |
| Imports - M/M | -6.2% | -1.1% | -1.5% |
| Imports - Y/Y | 4.4% | 12.0% | 11.9% |
| Exports - M/M | 0.6% | 7.9% | 6.1% |
| Exports - Y/Y | 2.8% | 10.4% | 7.2% |
Highlights
New Zealand's merchandise trade surplus shrank to NZ$46 million in May from NZ$236 million (revised down from NZ$427 million) in April, which was the first surplus since May 2022. It also narrowed from a surplus of NZ$148 million seen in May 2022. The deficit in March was revised to NZ$1,608 million from NZ$1,586 million.
Exports rose 2.8 percent on the year to NZ$7.0 billion in May, led by dairy products and fruit. It was the second straight increase after a 7.2 percent rise in April. China was the top destination for New Zealand exports, followed by the US and EU. Shipments to Australia fell. Exports edged up a seasonally adjusted 0.6 percent on the month in May for the third straight rise after rising a revised 6.1 percent in April.
Imports gained 4.4 percent to NZ$6.9 billion on higher purchases of aircraft and parts as well as machinery and equipment, following a 11.9 percent jump the previous month. The largest sources of NZ's imports were the US (aircraft and parts) and South Korea (petroleum products). Imports dipped 6.2 percent on the month in May for the second consecutive drop after falling a revised 1.5 percent the previous month.
Exports rose 2.8 percent on the year to NZ$7.0 billion in May, led by dairy products and fruit. It was the second straight increase after a 7.2 percent rise in April. China was the top destination for New Zealand exports, followed by the US and EU. Shipments to Australia fell. Exports edged up a seasonally adjusted 0.6 percent on the month in May for the third straight rise after rising a revised 6.1 percent in April.
Imports gained 4.4 percent to NZ$6.9 billion on higher purchases of aircraft and parts as well as machinery and equipment, following a 11.9 percent jump the previous month. The largest sources of NZ's imports were the US (aircraft and parts) and South Korea (petroleum products). Imports dipped 6.2 percent on the month in May for the second consecutive drop after falling a revised 1.5 percent the previous month.
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.
