Biggest trade deficit for six years
New Zealand's trade surplus narrowed as expected in April as whole milk powder exports to China declined.
New Zealand's trade surplus narrowed as expected in April as whole milk powder exports to China declined.
Statistics New Zealand said the trade surplus was $123 million in April, compared with the $100 million expected in a Reuters poll of economists. That's smaller than the $754 million surplus in March, which was revised higher from the $631 million initially reported. (See graph below)
The annual trade deficit was $2.62 billion, compared with the $2.79 billion expected in the Reuters poll, marking the largest deficit since June 2009, the agency said.
Annual exports to China, New Zealand's largest trading partner, dropped 26 percent in the year through April to $8.45 billion due to weaker demand for commodities such as whole milk powder. Exports of milk powder, butter and cheese, New Zealand's largest commodity export group, fell 27 percent to $888 million in April from the same month last year, due to lower quantities for whole milk powder and lower prices overall.
"The value of whole milk powder we sent to China in April 2015 was a fifth of the April 2014 value," international statistics manager Jason Attewell says. "Volumes were a third of what they were in April 2014 and lower prices made up the rest of the fall in value."
Exports in April declined 5.5 percent to $4.17 billion, compared to the same month last year and in line with the $4.2 billion expected in the Reuters poll.
Fruit exports rose 21 percent to $360 million, led by kiwifruit. Meanwhile, exports of logs, wood and wood articles slipped 8.7 percent to $311 million, led by pine logs. Crude oil exports declined 43 percent to $84 million.
Imports in April rose 2.6 percent to $4.04 billion from the same month a year earlier, in line with the $4.1 billion expected in the Reuters poll.
Capital goods imports rose 26 percent, led by transport equipment such as aircraft and parts. Imports of consumption goods increased 6.1 percent, led by food and beverages.
(BusinessDesk)
Tina Morrison
Tue, 26 May 2015
Tue, 26 May 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Biggest trade deficit for six years
48044