New Zealand has posted the third consecutive fall in the terms of trade.
Volumes of exports and imports are down, reflecting the slowing world economy, but prices of both are up.
The quarterly result caps off a year of dramatic changes in New Zealand’s trade balance.
On an annual basis, total import prices rose 19.2% for the 12 months to December, compared to a 1.4% decrease the previous year, and a 4.4% increase in 2006.
Export prices increase 21.4% for the year, compared to 7.3% the previous year and 8.3% in 2006.
In the most recent quarter, export volumes dropped 1.8%, with petroleum, and petrol products showing the largest drop at 17.5%.
Forestry products were another significant contributor with a 5.7% drop.
Export prices were up 2.5%, driven primarily by the decline in the New Zealand dollar, says Statistics New Zealand.
On the import side, volumes fell 4.8%, with passenger cars (27.1% and capital goods (7.7%) being the principle contributors.
Import prices, meanwhile, rose 3.4% - a rise which follows substantial previous quarterly increases (9.6% and 4.9% for the September and June quarters respectively).
Again, the drop in the New Zealand dollar is the main reason.
However a decline in petrol and related prices (down 22.4% for the quarter) has helped prevent the increase in import prices from being as bad as it could have been.
There have been substantial price rises in mechanical machinery, which is up 18.3% - the largest quarterly rise since the survey began in 1971.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- No need to 'Tesla panic' just yet, although electric cars are the coming thing
- Accountant pinged for unauthorised car payments, conflicts of interest
- Brexit aftermath: disdain, the elites, and the warning for conservative parties everywhere
- US Democrats vote not to oppose TPP
- Credit card spending has dived in UK post-Brexit: Mastercard exec
Most listened to
- NBR's Rob Hosking and John Shewan discuss the just released report
- Queenstown mayoral candidate Jim Boult talks up his chances
- Nathan Smith on the unsurprising US Democrat support of the TPP
- Mercer's Garry Adams sees upside in expats' cost of living drop
- What Australia needs now is stability, no more hopping around, says CPA CEO Alex Malley