New Zealand Trade Deficit Hits Record High


New Zealand posted a NZD 1484 million trade deficit in August 2018, compared with a NZD 1174 million gap in the same month of the previous year and with market expectations of a NZD 930 million shortfall. It was the widest monthly trade deficit on record, as imports jumped 13.9 percent year-on-year to NZD 5541 million and exports rose 9.9 percent to NZD 4054 million.

Exports went up 9.9 percent year-on-year to NZD 4.05 billion in August from NZD 3.69 billion in the same month a year earlier, below market expectations of NZD 4.4 billion. Among main categories, sales increased driven by meat and edible offal (+42.7 percent) and logs, wood & wood articles (+18.3 percent). Oil exports (+77.6 percent), iron & steel (+22.1 percent) and wood pulp & paper (20.8 percent) also increased well above average. Among major export partners, sales to Japan (+28.0 percent), Korea (+26.6 percent), and China grew strongly (+20.4 percent). Also, exports to the United States (13.8 percent) and the European Union (+11.8 percent) rose. In contrast, sales to Australia declined 7.4 percent.

Meantime, imports jumped 13.9 percent year-on-year to NZD 5.54 billion from NZD 4.86 billion, above market consensus of NZD 5.5 billion. Among main categories, imports were mainly driven by oil (+49.5 percent). In addition, inorganic chemicals (+100.3 percent), food residues (+83.3 percent) and aircraft & parts (+37.6 percent) also expanded above average. Among top import partners, purchases were mainly driven by Japan (+34.5 percent), Korea (+27.8 percent), and the United States (+17.3 percent). Notably, imports from United Arab Emirates soared 166.1 percent to NZD 262 million. 

New Zealand Trade Deficit Hits Record High


Mario | mario@tradingeconomics.com
9/26/2018 8:21:13 AM