| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$219M | NZ$-437M | NZ$-435M |
| Imports - M/M | 1.3% | 1.6% | 1.0% |
| Imports - Y/Y | 6.5% | -3.9% | -4.8% |
| Exports - M/M | 3.3% | 5.2% | 4.7% |
| Exports - Y/Y | 17.0% | 9.1% | 8.1% |
Highlights
New Zealand's merchandise trade balance shifted from a deficit of NZ$435 million in November to a surplus of NZ$219 million in December. This compares with a deficit of NZ$373 in December 2023.
Exports rose 3.3 percent on the month in December after an increase of 4.7 percent in November, and rose 17.0 percent on the year after previously advancing 8.1 percent. Exports of fruit, dairy products and meat all recorded strong increases. The increase in exports was also broad-based across major trading partners, with exports to Australia, China, Japan, the European Union and the United States all rising on the year.
Imports advanced 1.3 percent on the month in December after increasing 2.4 percent in November, and rose 6.5 percent on the year after dropping 4.8 percent previously. Petroleum imports fell on the year, as did imports of vehicles, parts and accessories, offset by increases in imports of mechanical and electrical machinery and equipment. Imports rose on the year from China and the United States, offset by declines in imports from Australia, Japan and the European Union.
Exports rose 3.3 percent on the month in December after an increase of 4.7 percent in November, and rose 17.0 percent on the year after previously advancing 8.1 percent. Exports of fruit, dairy products and meat all recorded strong increases. The increase in exports was also broad-based across major trading partners, with exports to Australia, China, Japan, the European Union and the United States all rising on the year.
Imports advanced 1.3 percent on the month in December after increasing 2.4 percent in November, and rose 6.5 percent on the year after dropping 4.8 percent previously. Petroleum imports fell on the year, as did imports of vehicles, parts and accessories, offset by increases in imports of mechanical and electrical machinery and equipment. Imports rose on the year from China and the United States, offset by declines in imports from Australia, Japan 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.
