Exports rose 4.4 percent on the month in May after falling 0.4 percent in April and advanced 2.9 percent on the year after a previous decline of 4.2 percent. Exports of meat, dairy products and fruit recorded moderate year-over-year increases, offset by a decline in exports of forestry products. Exports to Australia and China fell on the year, but this was outweighed by increases in exports to the European Union, Japan, and the United States.

Imports rose 3.4 percent on the month in May, slowing from an increase of 10.0 percent in April, and rose 0.6 percent on the year after a previous fall of 0.8 percent. Petroleum imports rose on the year for the second consecutive month, but there was further weakness in imports of vehicles and mechanical machinery and equipment. Imports from the United States and China rose on the year, offset by declines in imports from Australia, Japan, and the European Union.

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).

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.