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

 

NZ annual trade deficit reached nine-year high in July

NZ annual trade deficit reached nine-year high in July on rising oil prices

By Rebecca Howard

Aug. 24 (BusinessDesk) - New Zealand's annual trade deficit for July was the widest in nine years as petroleum imports soared, though it was slightly narrower than economists had expected as dairy exports continued to push higher.

The country's annual trade deficit widened to $4.4 billion in July from $3.2 billion a year earlier, Statistics New Zealand said. Economists had been expecting an annual deficit of $4.5 billion, according to the median in a Bloomberg poll of 10. It was the largest annual deficit since March 2009.

Annual imports for the year ended July were $60.7 billion, up $6.9 billion from the year ended July 2017. Annual exports were $56.2 billion, up $5.7 billion on the year.

“The rise in imports in the past year reflect large rises in both imports of petroleum and products, and in mechanical machinery and equipment. Exports of dairy and meat products led the exports rise,” international statistics manager Tehseen Islam said.

Imports of petroleum and products for the year ended July rose 30 percent to $6.5 billion, largely due to higher international crude oil prices.

For the year ended July, the value of dairy exports increased 11 percent to $14.4 billion. Milk fats including butter led this rise, up $955 million. Milk powder exports also increased, up $373 million.

For the July month, the trade deficit was $143 million versus the $400 million deficit economists had expected. Imports lifted 21 percent to $5.5 billion as petroleum and products lifted 84 percent to $165 million.

“Crude prices are much higher than they were at the same time last year. These price increases have driven an increase in values, as quantities are much the same,” Islam said.

Exports for the month rose 16 percent to $5.35 billion. The export values of dairy products increased 21 percent from July 2017, reaching $1.5 billion, the highest since last December.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: