NZ posts first trade deficit for March month in 10 years

NZ posts first trade deficit for March month in 10 years as fuel imports surge

By Tina Morrison

April 27 (BusinessDesk) - New Zealand posted its first trade deficit for a March month in a decade as a jump in fuel imports outweighed higher exports of butter and logs.

Goods imports rose 14 percent to $4.94 billion in March compared with the same month a year earlier, mainly driven by imports of crude oil, petrol and diesel, aircraft, computers, and tractors, Statistics New Zealand said. Petroleum and products surged $297 million, or 88 percent, to $634 million in March 2018, the largest increase since a $453 million rise in December 2013. Crude oil rose $198 million, while petrol and diesel rose $94 million. Stats NZ noted that monthly imports of petroleum and products can be volatile.

Meanwhile March exports increased 5.8 percent to $4.85 billion, led by increases in butter and untreated logs. The total value of butter exports rose $95 million, or 76 percent, to $221 million, with quantity up 47 percent compared with the same month of the previous year. Butter exports to Iran rose $36 million, and to China rose $23 million. Exports of forestry products rose $70 million, or 18 percent, to $460 million, led by a rise in untreated logs to China, up $54 million.

"Imports rose much more than exports, leading to a March month trade deficit of $86 million (1.8 percent of exports)," Stats NZ said. "This is the first deficit for a March month since 2008."

The annual trade deficit for the year ended March was $3.42 billion, compared with a $3.71 billion shortfall in the year to March 2017. Annual goods imports were valued at $58.07 billion, ahead of the $52.40 billion a year earlier, while annual exports increased to $54.65 billion from $48.69 billion.

(BusinessDesk)

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