| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-1,544M | NZ$-2,108M | NZ$-2,154M |
| Imports - M/M | -3.1% | -0.8% | -1.4% |
| Imports - Y/Y | 3.0% | -0.9% | -1.7% |
| Exports - M/M | 2.4% | 3.5% | 2.4% |
| Exports - Y/Y | 7.5% | 5.2% | 3.0% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$2,154 million in September to NZ$1,544 million in October. This compares with a deficit of NZ$1,733 in October 2023.
Exports rose 2.4 percent on the month in October, as they did in September, and rose 7.5 percent on the year after previously advancing 3.0 percent. Fruit exports rose very sharply on the year, with exports of dairy products and meat also recording solid increases. The increase in exports was broad-based across major trading partners, with exports to Australia, China, the European Union and the United States all rising on the year, offset by declines to some Asian trading partners.
Imports fell 3.1 percent on the month in October, weakening further from a decline of 1.4 percent in September, and rose 3.0 percent on the year after dropping 1.7 percent previously. Petroleum imports fell 24.0 percent on the year, while imports of vehicles, parts and accessories also fell sharply, down 29.9 percent. Imports fell on the year from China, Japan and the European Union, offset by increases in imports from Australia, the United States and South Korea.
Exports rose 2.4 percent on the month in October, as they did in September, and rose 7.5 percent on the year after previously advancing 3.0 percent. Fruit exports rose very sharply on the year, with exports of dairy products and meat also recording solid increases. The increase in exports was broad-based across major trading partners, with exports to Australia, China, the European Union and the United States all rising on the year, offset by declines to some Asian trading partners.
Imports fell 3.1 percent on the month in October, weakening further from a decline of 1.4 percent in September, and rose 3.0 percent on the year after dropping 1.7 percent previously. Petroleum imports fell 24.0 percent on the year, while imports of vehicles, parts and accessories also fell sharply, down 29.9 percent. Imports fell on the year from China, Japan and the European Union, offset by increases in imports from Australia, the United States and South Korea.
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.
