| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$1,426M | NZ$970M | NZ$794M |
| Imports - M/M | -0.9% | -1.9% | -1.5% |
| Imports - Y/Y | 1.8% | 12.2% | 12.0% |
| Exports - M/M | 4.2% | 0.6% | -1.1% |
| Exports - Y/Y | 24.6% | 19.2% | 16.2% |
Highlights
New Zealand's merchandise trade surplus widened from NZ$794 million in March to NZ$1,426 million in April. This compares with a deficit of NZ$12 million in April 2024. This covers the period that initially followed the escalation in global trade tensions early in the month.
Exports rose 4.2 percent on the month in April after falling 1.1 percent in March and increased 24.6 percent on the year after previously advancing 16.2 percent. Exports of fruit, dairy products, forestry products, and meat all recorded strong increases. The increase in exports was also broad-based across major trading partners, with exports to the United States, China, Japan, and the European Union all rising strongly on the year.
Imports fell 0.9 percent on the month in April after dropping 1.5 percent in March and rose 1.8 percent on the year after increasing 12.0 percent previously. Petroleum imports fell sharply on the year, offset by increases in imports of mechanical machinery and equipment. Headline imports were boosted by an aircraft purchase. Imports rose on the year from China and the United States, but imports from South Korea, the European Union, and Japan declined.
Exports rose 4.2 percent on the month in April after falling 1.1 percent in March and increased 24.6 percent on the year after previously advancing 16.2 percent. Exports of fruit, dairy products, forestry products, and meat all recorded strong increases. The increase in exports was also broad-based across major trading partners, with exports to the United States, China, Japan, and the European Union all rising strongly on the year.
Imports fell 0.9 percent on the month in April after dropping 1.5 percent in March and rose 1.8 percent on the year after increasing 12.0 percent previously. Petroleum imports fell sharply on the year, offset by increases in imports of mechanical machinery and equipment. Headline imports were boosted by an aircraft purchase. Imports rose on the year from China and the United States, but imports from South Korea, the European Union, 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.
