| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-1,234M | NZ$-1,709M | NZ$-1,730M |
| Imports - M/M | 4.1% | -4.9% | |
| Imports - Y/Y | -15.1% | -14.0% | -14.1% |
| Exports - M/M | 4.5% | -1.6% | -2.1% |
| Exports - Y/Y | -5.3% | -9.3% | -9.9% |
Highlights
New Zealand's merchandise trade deficit narrowed from a revised NZ$1,730 million in October to NZ$1,234 million in November. Both exports and imports rebounded on the month from previous declines.
Exports rose 4.5 percent on the month in November after a decline of 2.1 percent in October and dropped 5.3 percent on the year after a previous decline of 9.9 percent. Weakness in year-over-year growth reflects a big decline in fruit exports and a small decline in dairy exports, partly offset by year-over-year increases in exports of meat, forestry products, and some manufactured goods. Exports to Australia, China, Japan, and the European Union fell on the year, partly offset by an increase in exports to the United States.
Imports rose 4.1 percent on the month in November after falling 4.9 percent in October and fell 15.1 percent on the year after a previous decline of 14.1 percent. Vehicle imports fell particularly sharply after the government recently withdrew rebates for electric car purchases. Imports fell on the year from China, Australia, and the United States, partly offset by an increase in imports from Japan.
Exports rose 4.5 percent on the month in November after a decline of 2.1 percent in October and dropped 5.3 percent on the year after a previous decline of 9.9 percent. Weakness in year-over-year growth reflects a big decline in fruit exports and a small decline in dairy exports, partly offset by year-over-year increases in exports of meat, forestry products, and some manufactured goods. Exports to Australia, China, Japan, and the European Union fell on the year, partly offset by an increase in exports to the United States.
Imports rose 4.1 percent on the month in November after falling 4.9 percent in October and fell 15.1 percent on the year after a previous decline of 14.1 percent. Vehicle imports fell particularly sharply after the government recently withdrew rebates for electric car purchases. Imports fell on the year from China, Australia, and the United States, partly offset by an increase in imports from 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.
