Trade deficit narrows as dairy exports increase
Also helping buoy exports, fruit shipments lifted 40% to $147 million, while wood exports rose 25% to $367 million.
The monthly trade deficit narrowed in October as an improving global dairy market buoyed exports of dairy products.
The country's trade deficit was $846 million in October, from $1.4 billion last month and $905 million in October last year, Statistics New Zealand says.
The annual trade gap narrowed to $3.297 billion from $3.356 billion in September.
New Zealand's exports in October rose 2.2% to $3.9 billion, led by a 13% jump in the value of dairy product exports to $1.06 billion.
The global dairy market recovering after a prolonged slump in prices prompted farmers to pull back production, helping rebalance supply and demand for New Zealand's biggest agricultural commodity.
Also helping buoy exports in the month, fruit shipments lifted 40% to $147 million, while wood exports rose 25% to $367 million.
Offsetting the gains, meat exports dropped 18% to $315 million due to falls in beef and lamb, pushing meat down to third place in the monthly rankings behind wood.
"Dairy exports lifted in October, led by higher prices," ASB senior economist Jane Turner says. "Fruit and forestry also performed very well. Meat exports, although up in October on a seasonally-adjusted basis, do appear to be weakening on a trend basis and are below year-ago levels."
Meanwhile, imports in the month rose 0.6% to $4.74 billion, boosted by the importation of an aircraft in the month, which saw imports of aircraft goods jump to $373 million from $38 million a year earlier.
Imports of vehicles, parts and accessories, the biggest category, rose 14% to $670 million. Mechanical machinery and equipment, the second-biggest category, dropped 16% to $584 million, while electrical machinery and equipment slid 8.4% to $402 million.
On an annual basis, exports declined 0.5% to $48.67 billion in the year through October, compared with the same period a year earlier, while imports slid 0.3% to $51.97 billion.
(BusinessDesk)
Tina Morrison
Fri, 25 Nov 2016
Fri, 25 Nov 2016
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Trade deficit narrows as dairy exports increase
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