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

 

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news