| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$588M | NZ$-218M | NZ$-315M |
| Imports - M/M | -11.7% | 15.2% | 16.7% |
| Imports - Y/Y | -24.8% | 3.3% | 3.2% |
| Exports - M/M | -3.0% | 11.3% | 8.9% |
| Exports - Y/Y | 3.8% | 16.2% | 14.3% |
Highlights
New Zealand's merchandise trade balance shifted from a revised deficit of NZ$315 million in February to a surplus of NZ$588 million in March. Exports and imports both fell after previous increases.
Exports fell 3.0 percent on the month in March after advancing 8.9 percent in February and rose 3.8 percent on the year after a previous increase of 14.3 percent. Exports of forestry products and fruit recorded strong year-over-year growth, with exports of dairy products growing more moderately and exports of meat falling on the year. Exports to Australia, Japan and China fell on the year, offset by increases in exports to the European Union and the United States.
Imports fell 11.7 percent on the month in March after advancing 16.7 percent in February and fell 24.8 percent on the year after a previous increase of 3.2 percent. Petroleum imports fell on the year after a previous increase, accompanied by further weakness in imports of vehicles and mechanical machinery and equipment. Imports from all major trading partners fell sharply.
Exports fell 3.0 percent on the month in March after advancing 8.9 percent in February and rose 3.8 percent on the year after a previous increase of 14.3 percent. Exports of forestry products and fruit recorded strong year-over-year growth, with exports of dairy products growing more moderately and exports of meat falling on the year. Exports to Australia, Japan and China fell on the year, offset by increases in exports to the European Union and the United States.
Imports fell 11.7 percent on the month in March after advancing 16.7 percent in February and fell 24.8 percent on the year after a previous increase of 3.2 percent. Petroleum imports fell on the year after a previous increase, accompanied by further weakness in imports of vehicles and mechanical machinery and equipment. Imports from all major trading partners fell sharply.
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.
