| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$91M | NZ$588M | NZ$476M |
| Imports - M/M | 9.8% | -11.7% | -11.6% |
| Imports - Y/Y | -0.7% | -24.8% | -24.9% |
| Exports - M/M | 0.6% | -3.0% | -4.2% |
| Exports - Y/Y | -2.6% | 3.8% | 1.9% |
Highlights
New Zealand's merchandise trade surplus narrowed from a revised NZ$476 million in March to NZ$91 million in April. Exports and imports both rebounded after previous declines.
Exports rose 0.6 percent on the month in April after falling 4.2 percent in March and fell 2.6 percent on the year after a previous increase of 1.9 percent. Fruit exports recorded a strong year-over-year increase, but this was offset by declines in exports of meat, dairy products and forestry products. Exports to Australia and China fell on the year, offset by increases in exports to the European Union, Japan, and the United States.
Imports rose 9.8 percent on the month in April, up sharply from a decline of 11.6 percent in March, and fell 0.7 percent on the year after a previous drop of 24.9 percent. Petroleum imports rose on the year after a previous decline, but there was further weakness in imports of vehicles and mechanical machinery and equipment. Imports from Australia, Japan, and China rose on the year, offset by decline in imports from the European Union and the United States.
Exports rose 0.6 percent on the month in April after falling 4.2 percent in March and fell 2.6 percent on the year after a previous increase of 1.9 percent. Fruit exports recorded a strong year-over-year increase, but this was offset by declines in exports of meat, dairy products and forestry products. Exports to Australia and China fell on the year, offset by increases in exports to the European Union, Japan, and the United States.
Imports rose 9.8 percent on the month in April, up sharply from a decline of 11.6 percent in March, and fell 0.7 percent on the year after a previous drop of 24.9 percent. Petroleum imports rose on the year after a previous decline, but there was further weakness in imports of vehicles and mechanical machinery and equipment. Imports from Australia, Japan, and China rose on the year, offset by decline in imports from the European Union and the United States.
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.
