| Actual | Previous | Revised | |
| Balance | NZ$-519M | NZ$52M | NZ$-88M |
| Imports - M/M | -3.3% | 4.5% | 4.7% |
| Imports - Y/Y | 1.9% | 14.7% | 14.6% |
| Exports - M/M | -2.1% | 7.0% | 5.7% |
| Exports - Y/Y | 2.6% | 14.9% | 12.7% |
Highlights
New Zealand's merchandise trade deficit widened from NZ$88 million in December to NZ$519 million in January. This compares with a deficit of NZ$549 million in December 2025. Exports and imports both fell on the month after previous increases.
Exports fell 2.1 on the month in January after an increase of 5.7 percent in December, with year-over-year growth slowing from 12.7 percent to 2.6 percent. Exports of meat rose at a strong pace, but this offset by decline in exports of forestry products and dairy products. Exports were also mixed across majortrading partners, with weakness in exports to China and the United States offset by solid demand from Australia, the European Union, and Japan
Imports fell 3.3 percent on the month in January after increasing 4.7 percent in December, and rose 1.9 percent on the year after a previous increase of 14.6 percent. Imports of petroleum, mechanical machinery and equipment and motor vehicles all rose on the year. Imports from the Australia, the European Union, and China all rose on the year, offset by weaker imports from the United States and Japan.
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.