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

 

Terms of trade continue to fall


10 December 2008

Terms of trade continue to fall

The merchandise terms of trade fell 2.3 percent in the September 2008 quarter, due to import prices rising more than export prices, Statistics New Zealand said today. The latest fall followed a 0.4 percent fall in the June 2008 quarter. However, the terms of trade remain 4.4 percent higher than one year ago and over onefifth higher than five years ago. The latest fall means 2.3 percent less merchandise imports could be funded by a fixed quantity of merchandise exports than in the June 2008 quarter.

According to the Reserve Bank Trade Weighted Index, the New Zealand dollar depreciated by 5.4 percent and this made a significant contribution to September 2008 quarter rises in the import and export price indexes.

The import price index rose 11.1 percent, while seasonally adjusted import volumes fell 5.0 percent in the September 2008 quarter. The rise in prices was the largest quarterly rise for merchandise imports since the September 1984 quarter. The price index was driven up by a 31.0 percent rise in the petroleum and petroleum products index, the largest increase since a 66.3 percent rise in the December 1990 quarter.

When petroleum and petroleum products are excluded, the price index for merchandise imports rose 7.4 percent. The fall in import volumes was driven by a fall in the capital goods index (down 18.2 percent). The capital goods index was also the main contributor to a rise in import volumes rise in the June 2008 quarter – an oil rig and floating platform valued at $477 million were imported and took the index to a new high. The export price index rose 8.6 percent, while seasonally adjusted export volumes fell 2.3 percent in the September 2008 quarter.

The export price has increased for five consecutive quarters, and is 29.2 percent higher than in the June 2007 quarter, when it last fell. An 8.4 percent rise in the food and beverages index, driven by meat (up 11.5 percent) and dairy products (up 7.4 percent), was the main contributor to the overall increase in prices. The fall in export volumes was mainly due to dairy products and to petroleum and petroleum products. The volume of dairy products has fallen for the last three quarters.


  • Overseas Trade Index
  • Tables
  • Geoff Bascand

    Government Statistician

    10 December 2008

    ENDS


    © Scoop Media

     
     
     
    Business Headlines | Sci-Tech Headlines

     

    Air New Zealand: Capital Raise Deferred

    Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

    Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

    Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

    Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

    Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

    Air New Zealand: Business Travellers Return To The Skies In Record Numbers

    After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

    PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

    Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

    LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

    Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

    Commerce: House Values Continue To Climb As New Government Measures Announced

    The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>