| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-2,108M | NZ$-2,203M | NZ$-2,306M |
| Imports - M/M | -0.8% | 1.8% | 1.6% |
| Imports - Y/Y | -0.9% | -1.0% | -1.2% |
| Exports - M/M | 3.5% | -0.9% | -2.4% |
| Exports - Y/Y | 5.2% | -0.1% | -2.5% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$2,306 million in August to NZ$2,108 million in September.
Exports rose 3.5 percent on the month in September, rebounding strongly from a fall of 2.4 percent in August, and rose 5.2 percent on the year after previously falling 2.5 percent. Fruit exports rose sharply on the year, with exports of dairy products and forestry products also recording solid increases. Exports to the European Union and the United States rose on the year, outweighed by declines in exports to Australia, China and other major Asian trading partners.
Imports fell 0.8 percent on the month in September, weakening from growth of 1.6 percent in August, and fell 0.9 percent on the year after dropping 1.2 percent previously. Petroleum imports fell 20.9 percent on the year, while imports of vehicles, parts and accessories also fell sharply, down 41.0 percent. Imports fell on the year from China, Japan and South Korea, offset by increases in imports from Australia, the United States and the European Union.
Exports rose 3.5 percent on the month in September, rebounding strongly from a fall of 2.4 percent in August, and rose 5.2 percent on the year after previously falling 2.5 percent. Fruit exports rose sharply on the year, with exports of dairy products and forestry products also recording solid increases. Exports to the European Union and the United States rose on the year, outweighed by declines in exports to Australia, China and other major Asian trading partners.
Imports fell 0.8 percent on the month in September, weakening from growth of 1.6 percent in August, and fell 0.9 percent on the year after dropping 1.2 percent previously. Petroleum imports fell 20.9 percent on the year, while imports of vehicles, parts and accessories also fell sharply, down 41.0 percent. Imports fell on the year from China, Japan and South Korea, offset by increases in imports from Australia, the United States and the European Union.
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.
