NZ records first calendar year trade surplus since 2001

New Zealand recorded its first calendar year trade surplus since 2001 last year, with a big rise in dairy and log exports.

The trade surplus of $1.1 billion for the year to December was equivalent to 2.6 percent of exports, compared to an average deficit of 14 percent of exports over the preceding five December years, Statistics New Zealand (SNZ) said today.

Exports were worth $43.5 billion in 2010, an increase of $3.8b or 9.6 percent from 2009.

Milk powder, butter and cheese exports were up $2.3b or 29 percent for the year, while logs, wood and wood articles rose $630 million or 27 percent, and aluminium and aluminium articles rose $330m or 27 percent led by pinus radiata logs.

Imports were worth $42.4b in 2010, with the biggest increase in the vehicles and parts category which lifted $1b or 32 percent, SNZ said.

The second biggest import rise for the year was in petroleum and products, which lifted $667m or 11.5 percent.

For just the month of December there was a trade deficit of $250m, or 6.6 percent of exports, compared to an average deficit of 6.4 percent of exports for the preceding five December months.

Exports in the December month were up $390m or 11 percent from a year earlier to $3.8b, with the milk powder, butter and cheese category up $245m or 31 percent.

Meat and edible offal exports rose $101m or 25 percent for the month, and logs, wood and wood article exports rose $81m or 41 percent.

Imports were worth $4.1b in the month of December, up $614m or 18 percent from a year earlier, with aircraft and parts imports up $247m, mainly due to the one-off importation of aircraft.

Mechanical machinery and equipment imports were up $97m or 25 percent in the month.

Seasonally adjusted, the trade balance for the December quarter was a surplus of $275m, equivalent to 2.5 percent of exports. That was the fifth consecutive quarterly, seasonally adjusted surplus, SNZ said.

Exports rose a seasonally adjusted 3.1 percent to $11.1b in the three months to December, with meat and edible offal exports up 26 percent or $270m, and logs, wood and wood articles up 11 percent or $75m.

Imports rose a seasonally adjusted 4.2 percent to $10.9b in the quarter, compared with the three months to September.

Capital goods imports were up 15 percent or $279m in the quarter, following a 20 percent rise in the September quarter.

Transport equipment, which was not seasonally adjusted led the increase, up 170 percent or $387m, including the one-off importation of aircraft during the month of December, SNZ said.