| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$970M | NZ$510M | NZ$392M |
| Imports - M/M | -1.9% | 4.1% | 4.3% |
| Imports - Y/Y | 12.2% | 2.1% | 1.9% |
| Exports - M/M | 0.6% | -0.1% | -1.0% |
| Exports - Y/Y | 19.2% | 16.5% | 14.3% |
Highlights
New Zealand's merchandise trade surplus widened from NZ$392 million in February to NZ$970 billion in March. This compares with a surplus of NZ$470 billion in March 2024 but pre-dates the impact of the escalation in global trade tensions early this month.
Exports rose 0.6 percent on the month in March after falling 1.0 percent in February and increased 19.2 percent on the year after previously advancing 14.3 percent. Exports of fruit, dairy products, forestry products, and meat all recorded strong increases. With the exception of a small decline in exports to Australia, the increase in exports was broad-based across major trading partners, with exports to the United States, China, Japan, and the European Union all rising on the year.
Imports fell 1.9 percent on the month in March after strong growth of 4.3 percent in February and rose 12.2 percent on the year after increasing 1.9 percent previously. Petroleum imports and imports of mechanical machinery and equipment rose of the year, offset by a decline in imports of vehicles, parts and accessories. Imports rose on the year from China, the European Union, Australia, but imports from South Korea and Japan declined.
Exports rose 0.6 percent on the month in March after falling 1.0 percent in February and increased 19.2 percent on the year after previously advancing 14.3 percent. Exports of fruit, dairy products, forestry products, and meat all recorded strong increases. With the exception of a small decline in exports to Australia, the increase in exports was broad-based across major trading partners, with exports to the United States, China, Japan, and the European Union all rising on the year.
Imports fell 1.9 percent on the month in March after strong growth of 4.3 percent in February and rose 12.2 percent on the year after increasing 1.9 percent previously. Petroleum imports and imports of mechanical machinery and equipment rose of the year, offset by a decline in imports of vehicles, parts and accessories. Imports rose on the year from China, the European Union, Australia, but imports from South Korea and Japan 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.
