New Zealand Trade Deficit Widens in October

New Zealand’s trade deficit widened to NZD 871 million in October of 2017 compared to a NZD 798 million gap in the same month of the previous year and expectations of a NZD 750 million deficit. Exports jumped 16.2 percent year-on-year to NZD 4.56 billion after advancing 8.9 percent in the previous month, while imports climbed 15.0 percent to a record NZD 5.43 billion after only rising 1.4 percent in September, nudged by increases across a wide range of commodities.

Growth in exports was driven by sound increases of the three main commodities: milk powder, butter & cheese (+21.9 percent in October), meat & edible offal (+20.1 percent), and logs, woods & wood articles (+27.1 percent). In addition, crude oil (+136.1 percent), preparations of milk, cereals, flour & starch (+77.1 percent), and iron & steel (+65.3 percent) soared in October.  By destination, exports were nudged by China (+35.3 percent) and Australia (+17.1 percent). In contrast, exports to the United States (-12.0 percent) and Japan (-5.4 percent) fell in October.

Meanwhile, imports of the three main commodities grew at a significant pace: vehicles, parts & accessories (+25.0 percent), mechanical machinery & equipment (+33.0 percent), and petroleum & products (+18.0 percent). Fertilizers (+53.1 percent) also soared in October. In contrast, aircraft & parts went down 18.7 percent. By country of origin, imports from the European Union jumped 25.1 percent, mainly explained by a 49.9 percent increase in exports to Germany. Imports to the United States rebounded in October (+11.3 percent) after plummeting 32.1 percent in the previous month.

The annual trade deficit for the year ended October of 2017 narrowed to NZD 2.99 billion, from NZD 2.91 billion through September of 2017.

New Zealand Trade Deficit Widens in October

Mario |
11/23/2017 11:01:37 PM