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

 


NZ posts record February trade surplus of $818M on China

NZ posts record February trade surplus of $818M as China buys dairy, meat, logs

By Paul McBeth

March 27 (BusinessDesk) - New Zealand posted its biggest ever trade surplus for the month of February as Chinese demand for local primary products continued to soar.

The trade surplus was $818 million in February, from a revised $286 million surplus in January, and almost twice the $432 million surplus a year earlier, according to Statistics New Zealand. The annual trade balance was a surplus of $649 million, or 1.3 percent of exports. Economists polled by Reuters were expecting a monthly surplus of $600 million and an annual surplus of $490 million.

Exports climbed 17 percent to $4.56 billion, for an annual increase of 7.6 percent to $49.43 billion. That was underpinned by China, with exports to the world’s second-biggest economy up 49 percent to $1.17 billion in February, for a 53 percent annual gain to $10.93 billion, or 22 percent of all exports. Imports from China rose 0.7 percent to $647 million in February, and advanced an annual 6.3 percent to $8.3 billion.

Sales into China were led by whole milk powder, pine logs and sheep meat, and the world’s most populous nation bought about 44 percent of the New Zealand’s milk powder, butter and cheese exports.

“China has become an increasingly important destination for many of New Zealand's key commodity exports with strong demand supporting higher prices,” Westpac Banking Corp senior economist Anne Boniface said in a note. “In turn, high international prices for New Zealand's key commodity exports have boosted incomes, particularly in the rural sector.”

Last week New Zealand and China agreed to allow direct trading between their currencies, adding to a surge in trade links surge since a free trade agreement was signed in 2008. Reserve Bank governor Graeme Wheeler yesterday noted the deeper relationship and said the bank is currently reviewing its exchange rate measures which it hopes to complete before the end of the year.

New Zealand’s milk powder, butter and cheese exports rose 38 percent to $1.57 billion in February for an annual increase of 26 percent to $14.45 billion. Casein and caseinates edged up 1 percent to $100 million in the month, and rose 5.8 percent to $975 million in the year. Dairy products accounted for about 31 percent of the nation’s annual exports.

Meat and edible offal exports rose 17 percent to $647 million in February, for a 4.5 percent annual lift to $5.42 billion, while logs, wood and wood articles climbed 38 percent to $361 million in the month and 26 percent to $4.02 billion in the year.

Imports into New Zealand rose 8 percent to $3.74 billion in February for an annual increase of 3.7 percent to $48.78 billion.

Imports of petroleum rose 14 percent to $690 in February, and edged up 0.4 percent to $8.27 billion on the year, followed by a monthly 7.4 percent lift in mechanical machinery and equipment to $435 million and a 1.2 percent annual increase to $6.13 billion. Imported vehicles, parts and accessories rose 6.2 percent to $443 million in February, and were up 13 percent to $5.97 billion in the year.

The New Zealand dollar was little changed at 85.91 US cents at 11.25am in Wellington from 85.98 cents immediately before the release.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news