| Actual | Previous | Revised | |
| Balance | NZ$-1,349M | NZ$-1,949M | NZ$-2,118M |
| Imports - M/M | -8.4% | 2.9% | 2.8% |
| Imports - Y/Y | 13.1% | 28.4% | 28.4% |
| Exports - M/M | 7.0% | -2.8% | -4.4% |
| Exports - Y/Y | 15.4% | 13.5% | 10.8% |
Highlights
New Zealand's merchandise trade deficit narrowed from NZ$2,118 million in July to NZ$1,349 million in August. This compares with a deficit of NZ$1,313 million in August 2025. Exports rebounded on the month but imports fell sharply.
Exports rose 7.0 percent on the month in August after falling 4.4 percent in July, with year-over-year growth picking up from 10.8 percent to 15.4 percent. Exports of meat and fruit recorded strong increases, with exports of dairy and forestry products recording smaller increases. Exports were also solid across most major trading partners, with the exception of the United States.
Imports fell 8.4 percent on the month in August after increasing 2.8 percent in July, and rose 13.1 percent on the year after a previous increase of 28.4 percent. The value of petroleum imports again recorded strong growth, reflecting the impact of the Iran conflict. Growth was solid across most major trading partners, again with the exception of the United States.
Definition
The Merchandise 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.