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

 


NZ records fourth straight monthly trade deficit

NZ records fourth straight monthly trade deficit on fall in dairy, oil exports

Jan. 10 (BusinessDesk) – New Zealand recorded its fourth monthly trade deficit in a row due to a drop in exports of dairy products and crude oil, and resulting in a wider-than-expected annual gap.

The trade deficit was $700 million in November, widening from $666 million in October and from $577 million in the same month a year earlier, according to Statistics New Zealand. The annual deficit widened to $1.46 billion from $1.33 billion in the 12 months through October and from a small surplus in the same period a year earlier.

The annual trade gap exceeded the $1.34 billion forecast in a Reuters survey of seven economists. Exporters are having to cope with the headwinds of a New Zealand dollar that broke above 84 US cents overnight and has appreciated by 7.2 percent on a trade-weighted basis in the past 12 months.

Total exports fell 2.4 percent from a year earlier to $3.81 billion. Exports of milk powder, butter and cheese fell 10.3 percent in November from a year earlier to $1.06 billion. Shipments of meat and edible offal jumped 10.2 percent on the same basis to $341 million while exports of logs and wood gained 19 percent to $287 million – not enough to offset the fall in dairy.

“Conditions for exporters are likely to remain challenging, with the recovery in global demand likely to be only modest and the elevated NZD continuing as a headwind,” said Jane Turner, economist at ASB. “The gradual pace of domestic recovery has resulted in a slight pick-up in imports.”

Exports of crude oil fell 23 percent to $95 million while imports of petroleum and related products jumped 46 percent to $876 million.

Imports of mechanical machinery gained 9 percent to $541 million and imports of vehicles rose 21 percent to $533 million. Total imports rose 0.6 percent to $4.51 billion.

China remained the biggest source of imports, falling 4.7 percent to $737 million while goods from Australia fell 2 percent to $676 million and those from the US dropped 37 percent to $384 million.

Australia held its position as the biggest export market, with shipments falling 14 percent to $795 million in November from a year earlier. Exports to China surged 60 percent to $691 million and shipments to the US climbed 25 percent to $368 million.

The deficit in November amounted to 18 percent of exports. On a seasonally-adjusted basis the monthly deficit was $282 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news