| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$142M | NZ$1,235M | NZ$1,082M |
| Imports - M/M | 4.1% | -1.7% | -1.6% |
| Imports - Y/Y | 19.0% | -7.2% | -7.6% |
| Exports - M/M | 0.0% | -5.5% | -6.9% |
| Exports - Y/Y | 10.0% | 9.7% | 7.1% |
Highlights
New Zealand's merchandise trade surplus narrowed sharply from a revised NZ$1,082 million in May to NZ$142 million in June. This compares with a surplus of NZ$585 million in June 2024. Exports and imports recovered on the month from previous declines and recorded stronger year-over-year growth in June.
Exports were flat on the month in June after falling 6.9 percent in May, with year-over-year growth picking up from 7.1 percent to 10.0 percent. Exports of fruit, dairy products and forestry products all recorded increases of above 20 percent on the year. Exports to the United States and Japan fell on the year, offset by increases in exports to China, Australia, and the European Union.
Imports rose 4.1 percent on the month in June, rebounding sharply from a fall of 1.6 percent in May and surged 19.0 percent on the year after falling 7.6 percent previously. Imports of petroleum and motor vehicles rose on the year, offset by a fall in imports of mechanical machinery and equipment. Strength in imports was broad-based across major trading partners.
Exports were flat on the month in June after falling 6.9 percent in May, with year-over-year growth picking up from 7.1 percent to 10.0 percent. Exports of fruit, dairy products and forestry products all recorded increases of above 20 percent on the year. Exports to the United States and Japan fell on the year, offset by increases in exports to China, Australia, and the European Union.
Imports rose 4.1 percent on the month in June, rebounding sharply from a fall of 1.6 percent in May and surged 19.0 percent on the year after falling 7.6 percent previously. Imports of petroleum and motor vehicles rose on the year, offset by a fall in imports of mechanical machinery and equipment. Strength in imports was broad-based across major trading partners.
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.
