| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$510M | NZ$-486M | NZ$-544M |
| Imports - M/M | 4.1% | 2.4% | 1.3% |
| Imports - Y/Y | 2.1% | 13.4% | 12.2% |
| Exports - M/M | -0.1% | 10.8% | 8.3% |
| Exports - Y/Y | 16.5% | 28.3% | 25.6% |
Highlights
New Zealand's merchandise trade balance shifted from a deficit of NZ$544 million in January to a surplus of NZ$510 million in February. This shift in the balance is in line with the normal seasonal pattern at the start of the year.
Exports fell 0.1 percent on the month in February after an increase of 8.3 percent in January and increased 16.5 percent on the year after previously advancing 25.6 percent. Exports of fruit, dairy products, and meat all recorded strong increases, offset slightly by a fall in exports of forestry products. With the exception of exports to the United States, the increase in exports was broad-based across major trading partners, with exports to Australia, China, Japan, and the European Union all rising on the year.
Imports advanced 2.1 percent on the month in February after increasing 1.3 percent in January and rose 2.1 percent on the year after increasing 12.2 percent previously. Petroleum imports and imports of vehicles, parts and accessories fell on the year, but there were strong increases in imports of mechanical machinery and equipment. Imports rose on the year from China and the Unioted States, but imports from Australia, Japan and the European Union all declined.
Exports fell 0.1 percent on the month in February after an increase of 8.3 percent in January and increased 16.5 percent on the year after previously advancing 25.6 percent. Exports of fruit, dairy products, and meat all recorded strong increases, offset slightly by a fall in exports of forestry products. With the exception of exports to the United States, the increase in exports was broad-based across major trading partners, with exports to Australia, China, Japan, and the European Union all rising on the year.
Imports advanced 2.1 percent on the month in February after increasing 1.3 percent in January and rose 2.1 percent on the year after increasing 12.2 percent previously. Petroleum imports and imports of vehicles, parts and accessories fell on the year, but there were strong increases in imports of mechanical machinery and equipment. Imports rose on the year from China and the Unioted States, but imports from Australia, Japan and the European Union all declined.
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.
