Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ trade balance breaks into small surplus

New Zealand trade balance breaks into small surplus

(See Full release with charts (PDF))

New Zealand's trade balance posted a small surplus in December, thanks to surging exports and despite stronger than expected imports. The non-seasonally adjusted figures showed a small surplus of NZ$33 million in December, as exports spiked to NZ$3.68 billion (up 25%oya) and imports rose to NZ$3.64 billion (up 11%oya). The annual deficit narrowed to it's smallest margin since the year to June 2005, as dairy products drove exports revenue to a record level. The record value of dairy exports and the recent increase in crude oil exports from the new Tui oil field has resulted in substantial increases in export values for three consecutive months.

According to the report, milk powder and petroleum products combined accounted for close to two-thirds of the total increase in exports over the December quarter, and exceeded NZ$1 billion for the first time in the December month. On the import side, intermediate goods rose 8%q/q over the December quarter, and consumption goods increased 5%q/q. Over the month, petroleum imports recorded the largest increase in value.

Today's report suggests the much anticipated growth rotation away from households to exports is well underway. Export volumes will likely drive GDP growth as global demand for New Zealand's commodities expands and surging food prices encourage exporters to boost supply. Furthermore, the dairy industry, New Zealand’s largest export sector, is experiencing a massive windfall of income thanks to milk solid prices more than doubling in the past year. The windfall over cash to farmers should encourage investment in the sector, and in-turn boost volumes.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: