| Actual | Previous | Revised | |
| Balance | NZ$52M | NZ$-163M | NZ$-335M |
| Imports - M/M | 4.5% | -0.8% | -0.8% |
| Imports - Y/Y | 14.7% | 4.4% | 4.3% |
| Exports - M/M | 7.0% | -0.7% | -2.4% |
| Exports - Y/Y | 14.9% | 9.2% | 6.4% |
Highlights
New Zealand's merchandise trade balance shifted from a deficit of NZ$335 million in November to a surplus of NZ$52 million in December. This compares with a deficit of NZ$36 million in November 2024. Exports and imports both rebounded on the month after previous declines.
Exports rose 7.0 on the month in December after a decline of 2.4 percent in November, with year-over-year growth accelerating from 6.4 percent to 14.9 percent. Exports of meat, forestry products and dairy products recorded strong increases, and growth was broad-based across major trading partners, with big increases in exports to Australia, Japan, and the European Union and solid increases in exports to China and the United States.
Imports rose 4.5 percent on the month in December, up sharply from a drop of 0.8 percent, and rose 14.7 percent on the year after a previous increase of 4.3 percent. Imports of petroleum, mechanical machinery and equipment and motor vehicles all rose on the year. Imports from the Australia, the European Union, China, and Japan all rose on the year, offset by weaker imports from the United States.
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.