Monthly trade deficit widest on record

26 September 2018

A rise in goods imports to near record levels in August 2018 has contributed to the largest-ever monthly goods trade deficit, Stats NZ said today.

The trade deficit in August 2018 was $1.5 billion (37 percent of exports). The average monthly deficit in August over the last five years was $1.0 billion.

“This month’s rise in imports to near record levels occurs at the time of year when exports are typically at a low point,” international statistics manager Tehseen Islam said.

“The high values for total monthly imports in the last four months helped push the annual trade deficit to a nine-year high of $4.8 billion.”

In August 2018, imports rose $675 million (14 percent) on the same month last year to reach $5.5 billion, the third-highest total on record. Exports were up $366 million to reach $4.1 billion.

Petroleum and products lead imports rise

The leading contributor to the imports rise was petroleum and products, up $186 million (50 percent) from last year. This increase was led by crude oil (up $98 million) and diesel (up $73 million).

Imports of crude oil and other petroleum products tend to fluctuate from month to month. The quantity of crude oil imported in August 2018 fell 13 percent from August 2017, but prices rose by about 60 percent.

The latest unit price for crude oil remains 31 percent lower than the most-recent series peak in May 2012.

Imports of vehicles, parts, and accessories also rose in August 2018, up $55 million. Imports of buses, cars, and trucks all had similar contributions to this rise.

Meat leads exports rise

The value of total exports was $4.1 billion in August 2018, up $366 million (9.9 percent) from August 2017.

The leading contributor to the rise was meat products and edible offal, up $137 million (43 percent). This increase was led by sheep meat (up $83 million or 55 percent) and beef (up $45 million or 31 percent).

“New Zealand is exporting more beef and lamb, and getting better prices too,” Mr Islam said.

Dairy products were up $80 million (17 percent), led by an increase in butter and other milk fats, up $63 million.

Forestry products rose $74 million (18 percent), led by a rise in untreated logs, up $58 million.

Seeking your feedback on goods imports visualisation

New Zealand’s largest goods imports from the world is a visualisation showing New Zealand’s main goods imports from the world on a ‘chalkboard’. Stats NZ is seeking your feedback on how useful this visual is to you, and any suggestions on how it can be improved.

This feedback will be combined with those received on New Zealand's largest exports to the world, a map produced with the news story Fuel lifts imports to new June high.

To send your feedback, click on the feedback link provided on the page.

The Government Statistician authorises all statistics and data we publish.

For more information about these statistics:

• Visit Overseas merchandise trade: August 2018

• See CSV files for download

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