| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-163M | NZ$-1,542M | NZ$-1,598M |
| Imports - M/M | -0.8% | 7.3% | 7.3% |
| Imports - Y/Y | 4.4% | 10.5% | 10.5% |
| Exports - M/M | -0.7% | -0.1% | -0.6% |
| Exports - Y/Y | 9.2% | 15.6% | 14.6% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$1,598 million in October to NZ$163 million in November. This compares with a deficit of NZ$450 million in November 2024. Exports and imports both weakened on the month.
Exports fell 0.7 on the month in November after a decline of 0.6 percent in October, with year-over-year growth moderating from 14.6 percent to 9.2 percent. Exports of meat, fruit and dairy products recorded strong increases, but growth was mixed across major trading partners, with big increasers in exports to Australia and the European Union offset by weakness in exports toJapan, China, and the United States.
Imports fell 0.4 percent on the month in November, weakening sharply from a previous increase of 7.3 percent, and rose 4.4 percent on the year after a previous increase of 10.5 percent. Imports of petroleum, mechanical machinery and equipment and motor vehicles all rose on the year. Imports from the United States,the European Union, China, and Japan all rose on the year, offset by weaker imports from Australia.
Exports fell 0.7 on the month in November after a decline of 0.6 percent in October, with year-over-year growth moderating from 14.6 percent to 9.2 percent. Exports of meat, fruit and dairy products recorded strong increases, but growth was mixed across major trading partners, with big increasers in exports to Australia and the European Union offset by weakness in exports toJapan, China, and the United States.
Imports fell 0.4 percent on the month in November, weakening sharply from a previous increase of 7.3 percent, and rose 4.4 percent on the year after a previous increase of 10.5 percent. Imports of petroleum, mechanical machinery and equipment and motor vehicles all rose on the year. Imports from the United States,the European Union, China, and Japan all rose on the year, offset by weaker imports from Australia.
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.
