New Zealand's merchandise trade deficit widened from NZ$1,235 million in August to NZ$1,355 million in September. This compares with a deficit of NZ$2,166 million in September 2024. Exports and imports both recorded stronger growth in August.

Exports rose 0.9 on the month in September after advancing 7/0 percent in August, with year-over-year growth moderating from 21.0 percent to 19.0 percent. Exports of meat and dairy products recorded strong increases, while exports rose on the year to all major trading partners with the exception of Singapore.

Imports fell 4.5 percent on the month in September, weakening from an increase of 1.8 percent in August, and rose 1.6 percent on the year after a previous decline of 1.0 percent. Imports of mechanical machinery and equipment and motor vehicles rose on the year, offset by a fall in petroleum imports. Imports from Australia, China, and Japan, all rose on the year, offset by weaker imports from South Korea, Singapore, and the United States.

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).

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.