| Actual | Previous | Revised | |
| Balance | NZ$-257M | NZ$-519M | NZ$-627M |
| Imports - M/M | 5.8% | -3.3% | -1.5% |
| Imports - Y/Y | 11.8% | 1.9% | 1.8% |
| Exports - M/M | -1.5% | -2.1% | -3.4% |
| Exports - Y/Y | 0.4% | 2.6% | 0.7% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$627 million in January to NZ$257 million in February. This compares with a surplus of NZ$444 million in February 2025. Exports fell on the month but imports rose strongly.
Exports fell 1.5 percent on the month in February after dropping 3.4 percent in January, with year-over-year growth moderating from 0.7 percent to 0.4 percent. Exports of meat rose at a strong pace, but this offset by decline in exports of fruit, forestry products and dairy products. Exports were also mixed across major trading partners, with weakness in exports to China and Japan offset by solid demand from Australia, the European Union, and the United States.
Imports rose 5.8 percent on the month in February after falling 1.5 percent in January, and rose 11.8 percent on the year after a previous increase of 1.8 percent. Imports of mechanical machinery and equipment and motor vehicles drove the headline increase. Strong growth in imports were recorded from all majortrading 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.