New Zealand Trade Gap Largest in Near 2 Years

New Zealand's trade deficit widened to NZD 1.94 billion in July 2026, up from NZD 0.76 billion in the same month a year earlier and surpassing estimates of NZD 0.32 billion. It was the largest trade deficit since September 2024, as exports increased less than imports. Exports rose 13.5% yoy to NZD 7.39 billion, mainly driven by higher sales of milk powder, butter, and cheese (6.4%); meat and edible offal (34.1%); aluminum and aluminum articles (43.4%); and fruit (15.1%). Among trading partners, exports to China rose 14.4%, while shipments to the US surged 29.5%. Meanwhile, imports surged 28.4% yoy to a record high of NZD 9.34 billion, following a downwardly revised 27.5% jump in June. The surge in import growth was mainly driven by higher purchases of petroleum and petroleum products (127.2%) and vehicles, parts, and accessories (37.5%). By source, imports increased from China (21.2%), Australia (12.9%), South Korea (18.3%), and the EU (19%), while imports from the US fell (-1.7%).

New Zealand's trade surplus narrowed to NZD 0.02 billion in June 2026, down from NZD 0.16 billion in the same month a year earlier and below estimates of NZD 0.25 billion. It was the smallest trade surplus since February, when the trade balance posted a deficit, as exports grew less than imports. Exports grew 24.8% yoy to NZD 8.09 billion, mainly driven by higher sales of milk powder, butter, and cheese (15.7%); meat and edible offal (51.8%); preparations of milk, cereals, flour, and starch (129.8%); and aluminum and aluminum articles (73.7%). Among trading partners, exports to China surged 23.5%, while shipments to the US jumped 42.8%. Meanwhile, exports to Australia and Japan rose 18.4% and 6.9%, respectively. Imports jumped 27.8% yoy to NZD 8.07 billion, mainly driven by higher purchases of petroleum and petroleum products (up 99.7%) and mechanical machinery and equipment (22.5%). By source, imports rose from China (32.1%), Australia (23.5%), South Korea (41.2%), and the EU (23.5%).

New Zealand's trade surplus declined to NZD 0.8 billion in May 2026, down from NZD 1.1 billion in the same month a year earlier and slightly below estimates of NZD 0.875 billion, as exports rose less than imports. Exports grew 18.1% year-on-year to a record high of NZD 8.9 billion, mainly driven by higher sales of milk powder, butter, and cheese (6.9%), precious metals, jewellery, and coins (54.4%); meat and edible offal (42.8%), and fruit (11.2%). Among trading partners, exports to China rose 10.3%, while shipments to Australia, the US, Japan, and the EU increased by 32.9%, 28.7%, 30.8%, and 15.2%, respectively. Meanwhile, imports jumped 25.9% year-on-year to NZD 8.1 billion, mainly driven by higher purchases of petroleum and petroleum products (up 104.1%), electrical machinery and equipment (18.5%), vehicles, parts, and accessories (36.6%). By source, imports rose from China (18.9%), Australia (20.0%), the US (17.9%), South Korea (78.7%), and the EU (15.0%).