New Zealand unexpectedly posted its first trade surplus in five months in December as exports of milk powder, butter, and cheese reached record high, data from Statistics New Zealand showed Friday.
The trade surplus amounted to NZ$338 million compared to a deficit of NZ$307 million in November. Economists expected the deficit to shrink to NZ$50 million. A year earlier, the balance was in a deficit of NZ$218 million.
During the month, exports climbed 12.8 percent year-on-year to NZ$4.32 billion, faster than the 6.8 percent increase in the previous month. Economists had forecast exports to rise to NZ$4.11 billion from NZ$3.91 billion in November.
The main driver behind the improvement in the trade balance was dairy products, shipments of which soared 32.1 percent year-on-year in December to a record value of NZ$1.35 billion. Shipments of these products were at all-time high also in terms of quantity.
Meanwhile, imports fell 1.6 percent annually to NZ$3.98 billion. This was below an import bill of NZ$4.2 billion received in November. Economists expected only a modest fall to NZ$4.10 billion.
In the December quarter, the trade deficit shrank to NZ$195 million from NZ$1.38 billion in the September quarter. In the year ended December 2011, the balance was in a surplus of NZ$1.1 billion compared to NZ$1.2 billion in the same period of 2010.
In a speech in Christchurch today, Reserve Bank Governor Alan Bollard said that the European sovereign debt crisis and Canterbury earthquakes were two bad jolts to the New Zealand economy in 2011, but the economy and financial system have the capacity to weather such shocks.
Nonetheless, the effects of both shocks could continue to rumble on for some time, he said.
The Reserve Bank of New Zealand on Thursday decided to retain the benchmark interest rate at record low of 2.5 percent for a seventh straight time, citing concerns over the ongoing uncertainty around global conditions and the moderate pace of domestic demand.
After the monetary policy announcement, Bollard noted that the recent appreciation of the New Zealand dollar is reducing exporters' returns despite higher prices for New Zealand's export commodities. The economy expanded 0.8 percent quarter-on-quarter in the September quarter, faster than the 0.l percent expansion in the preceding quarter.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.